5th Jan 2005 11:27
Close Brothers Group PLC05 January 2005 CLOSE BROTHERS GROUP PLC ("CLOSE BROTHERS") ANNOUNCES THE ACQUISITION OF THE MOTOR FINANCE LOAN BOOK OF SINGER & FRIEDLANDER FINANCE LIMITED ("S&F FINANCE") Close Brothers announces that it has reached agreement with Singer & Friedlanderplc for the acquisition of a substantial proportion of the loan portfolio of S&FFinance. The assets being acquired are loan agreements for the purchase ofpredominantly used cars. The purchase will be made by Close Brothers' bankingsubsidiary, Close Brothers Limited, and will be funded from the bank's existingresources. The loans will be collected out by Close Motor Finance Limited, thebank's motor finance subsidiary. Completion is expected to occur on 7 January2005. The consideration for the assets being acquired is approximately £131 million,subject to a completion balance sheet audit, and will be paid in cash. Theconsideration reflects a discount to book value of £2.2 million. An escrowaccount of £2 million will be established to cover bad debts incurred in excessof the doubtful debt provisions at completion. Commenting on the acquisition, Mr Hodges, Chairman of Close Brothers Limited,said "Close Motor Finance is well placed to collect out these loans profitably.This acquisition will result in Singer & Friedlander's exit from the consumermotor finance market and give us access to a number of independent motordealers, from whom further car loan finance opportunities may be forthcoming." Press enquiries: Close Brothers Limited: Stephen Hodges - 020 7426 4000 This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
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