22nd Jun 2006 17:00
Barclays PLC22 June 2006 22nd June 2006 BARCLAYS PLC TO ACQUIRE US MORTGAGE SERVICING BUSINESS OF HOMEQ SERVICING CORPORATION FROM WACHOVIA CORPORATION Barclays Bank PLC ("Barclays") announces that it has entered into an agreementto purchase the US mortgage servicing business of HomEq Servicing Corporationfrom Wachovia Corporation ("Wachovia") for a consideration of $469 million. Thisconsideration represents net book value for the mortgage servicing rights("MSR") and fixed assets, and $209 million in respect of advances, thecollection of which is fully indemnified by Wachovia. The consideration issubject to an adjustment mechanism based on the value of the MSR and advances atcompletion of the transaction. Completion is subject to various conditionsincluding regulatory consents. Barclays will finance the transaction out ofexisting cash resources. This transaction will add further capabilities to Barclays Capital's successfulmortgage securitisation franchise in the US. Grant Kvalheim, Co-President of Barclays Capital, commented, "This is a greatopportunity for Barclays Capital to add an additional first-class operation toits US business. This transaction will enable us to grow our existing USmortgage securitisation franchise. It will improve our ability to price deals,manage risk and expand our list of counterparties." - ENDS - For further information please contact Investor Relations Media RelationsMark Merson/James S Johnson Alistair Smith/Jo Thethi+44 (0) 20 7116 5752/2927 +44 (0) 20 7116 6132/6217 Contact at Barclays Capital in New York: Peter Truell +1 (212) 412-7576 Forward-looking statements This document contains certain forward-looking statements within the meaning ofSection 21E of the US Securities Exchange Act of 1934, as amended, and Section27A of the US Securities Act of 1933, as amended, with respect to certain ofBarclays plans and its current goals and expectations relating to its futurefinancial condition and performance, in particular with respect to BarclaysCapital. These forward-looking statements can be identified by the fact thatthey do not relate only to historical or current facts. Forward-lookingstatements sometimes use words such as 'aim', 'anticipate', 'target', 'expect','estimate', 'intend', 'plan', 'goal', 'believe', or other words of similarmeaning. Examples of forward-looking statements include, among others,statements regarding Barclays future financial position, income growth,impairment charges, business strategy, projected levels of growth in the bankingand financial markets, projected costs, estimates of capital expenditures, andplans and objectives for future operations. By their nature, forward-looking statements involve risk and uncertainty becausethey relate to future events and circumstances, including, but not limited to,global as well as US economic and business conditions, market related risks suchas changes in interest rates and exchange rates, the policies and actions ofgovernmental and regulatory authorities, changes in legislation, and the impactof competition - a number of which factors are beyond Barclays control. As aresult, Barclays actual future results may differ materially from the plans,goals, and expectations set forth in Barclays forward-looking statements. Anyforward-looking statements made by or on behalf of Barclays speak only as of thedate they are made. Barclays does not undertake to update forward-lookingstatements to reflect any changes in Barclays expectations with regard theretoor any changes in events, conditions or circumstances on which any suchstatement is based. The reader should, however, consult any additionaldisclosures that Barclays has made or may make in documents it has filed or mayfile with the SEC. This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
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