22nd Feb 2008 10:59
Merchant House Group PLC22 February 2008 22 February 2008 Merchant House Group plc Leasing finance joint venture seeks new funding for further growth AIM-quoted Merchant House Group plc (MHG) is pleased to announce that itsjoint-venture asset and leasing finance business Merchant House Finance (MHF),is to embark on a fundraising of up to £1 million to underpin further growth. Merchant House Group holds a 49% stake in MHF, with an option to go to 75%. Thebalance is held by Industrial Investment Group Limited, an established leasingand asset finance business. The cost of exercising the option to acquire up to 75% of MHF is based on amultiple of distributable post tax profits of the joint venture as at December31, 2009, with a top up mechanism of 10% of any increase in distributablejoint-venture profits in the two following years. MHF is an associate company and one of five units within MHG, which has recentlyannounced a series of restructuring steps to enhance margins by increasingdeal-flow and reducing overheads. MHF specialises in providing or arrangingleasing and asset finance either as a principal or as an intermediary oradviser. MHF has recently completed a financing arrangement for Countryliner Ltd, aSurrey based bus and coach operator, and completed the funding for theacquisition of a small cruise ship for Scotland's Majestic Line. Other recentdeals include a promissory note discounting for a major European airline and theleasing of a super-yacht to the Chairman of a major PLC. MHF also last month signed a new strategic partner agreement with The PracticeLoan Company plc to offer financing for legal practices and other professionalsseeking amounts of more than £250,000 to fund operating costs. MHF Chief Executive John Lutterloch said: "We are very pleased with these recentdevelopments. They follow a maiden year of solid progress that has put in placea team of 11 senior professionals to drive further growth, and a number of keystrategic partner agreements." Alongside MHF, MHG also comprises Merchant Capital Ltd, Merchant StockbrokersLtd, Merchant Wealth Management Ltd, and Merchant Legal LLP - all structured tominimise overheads and maximise the opportunity for cross-referrals. For further information contact: Martin Eberhardt, Chairman, Merchant House Group plc: 020 7332 2200Alex Borrelli, Shore Capital and Corporate Limited: 020 7408 4090Allan Piper, First City Financial Public Relations: 020 7242 2666 This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
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