31st Oct 2005 14:47
Manchester Building Society31 October 2005 Manchester Building Society announces that its Board has agreed in principle tomake available up to 49% of the ordinary share capital of its mortgage networksubsidiary, Mortgage Broking Services Limited (MBSL), to the AppointedRepresentative firms of the network. It is intended to allocate shares linked to the level of mortgage businesswritten by each broker through the network. However, in order to qualify fordistribution of the shares on 1 April 2010, AR firms would need to remainmembers of the MBSL network until the vesting date of 15 March 2010. Society Chief Executive David Cowie commented:- "Our original concept was to develop MBSL as a cooperative joint venture between the Society and mortgage brokers, with the Society having the resource to invest in establishing the network's infrastructure while benefiting from improved access to the residential housing finance market through its sponsorship of the network. The improving financial performance of MBSL now coming through has coincided with ongoing member enthusiasm for participation in the ownership of the network, hence the move to create this enfranchisement programme. Shareholding allocations will depend largely, however, on future business volumes written by our members. Our share scheme will not be restricted solely to current members and it will, therefore, enable new members to participate relative to their business levels up to the end of 2009. This is clearly a bold initiative designed to benefit both member firms and the embedded value of the MBSL business itself," Finalised details of the arrangements are expected to be communicated tomortgage brokers early in 2006, together with information that will enable themto evaluate the proposal. This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
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