TIDMCIN
RNS Number : 5486D
City Of London Group PLC
31 January 2018
THE INFORMATION CONTAINED WITHIN THIS ANNOUNCEMENT IS DEEMED TO
CONSTITUTE INSIDE INFORMATION FOR THE PURPOSES OF ARTICLE 7 OF THE
MARKET ABUSE REGULATION (EU) NO. 596/2014. UPON THE PUBLICATION OF
THIS ANNOUNCEMENT, THIS INSIDE INFORMATION IS NOW CONSIDERED TO BE
IN THE PUBLIC DOMAIN.
LEI Number: 2138003UW63TMQ5ZFD85
31 January 2018
CITY OF LONDON GROUP PLC
Banking licence strategy update
City of London Group PLC announced on 19 December 2017, that it
was recruiting a team under the leadership of Jason Oakley, to
start the process of obtaining a banking licence and creating a
business with the purpose of offering a real choice in commercial,
SME, bridging and development finance.
COLG is now pleased to announce that it has entered into a
formal agreement with the team comprising Jason Oakley, Adrian
Golumbina and Bryce Glover.
Under the agreement COLG is acquiring a 73% equity interest in
Echo Financial Services Limited, a recently established company
with no material assets or liabilities. The remaining 27% equity
interest will be held by Jason Oakley, 15%; Adrian Golumbina, 10%;
and Bryce Glover, 2%.
COLG will provide total additional funding of up to GBP2.5m.
However, if COLG's Board determines that the joint venture requires
further funding, then COLG and Jason Oakley will provide
Shareholder Loans in equal proportions up to an amount of GBP1.5m
(a maximum of GBP0.75m each).
COLG has put and call option arrangements over the equity
interest held by the team. The maximum amount payable by COLG to
acquire the equity interest held by the team is GBP5.4m, which will
be satisfied in COLG shares.
The maximum potential commitment is GBP8.65m, of which GBP5.4m
is to be satisfied in COLG shares and the remainder in cash.
As previously announced, Jason Oakley will subscribe GBP400,000
for 421,052 new COLG shares and Bryce Glover will subscribe
GBP50,000 for 52,631 new COLG shares at a subscription price of 95p
per share. The price per share was calculated when the agreement
was announced in December 2017.
Michael Goldstein, CEO of City of London Group said "I am
delighted that we now have a top quality delivery team in place,
led by Jason Oakley, that is properly motivated and incentivised to
build a first class challenger bank offering a real choice in
commercial, SME, bridging, and development finance. There is a
strong desire to break the banking oligopoly and this is further
strengthened by advances in technology, making a "bricks &
mortar" network of branches less significant as a barrier to entry.
We are all very excited about the prospects of this business."
Editors Notes
Jason Oakley built the lending business of Metro Bank as
Managing Director Commercial Banking & Mortgages from GBP65m to
over GBP2.5bn in less than 3 years with an income stream of
approximately GBP100m and market leading margins. Prior to this he
was Head of SME for NatWest and RBS with over 3,000 relationship
managers looking after over 1m clients and over GBP1bn of
revenue.
Bryce Glover has operated at Board and Executive Committee level
during a 36 year career focused on Corporate and Commercial
Banking. He was MD of Commercial Banking at Alliance &
Leicester/ Santander before joining Nationwide in 2009 as Director
heading its Commercial Division running a GBP22bn lending
portfolio. Bryce was Nationwide's Corporate Affairs Director from
2014 to 2016 and is an NED of Newcastle Building Society.
Adrian Golumbina has over 20 years' experience in finance and
has a proven career as a Finance Director across several industry
sectors: financial services, contract hire/leasing, and
engineering. Having qualified with Grant Thornton and worked in
corporate finance at PwC, he has experience of building high
performing organisations that deliver to stretch targets, be it in
fast growing medium sized enterprises or large corporates. Most
recently, he was part of the Finance Leadership Team and has worked
as Finance Director in three divisions at Network Rail and was
involved in the successful delivery of hundreds of millions worth
of engineering projects.
Enquiries
City of London Group
plc +44 (0)203 005
Michael Goldstein 9304
---------------------------- ---------------
Peel Hunt LLP (nominated
adviser and broker)
James Britton, Rishi +44 (0)207 418
Shah 8900
---------------------------- ---------------
The PR Office (PR adviser)
Marc Cohen, Jonathan +44 (0)207 284
Garfield 6969
---------------------------- ---------------
Peel Hunt LLP ("Peel Hunt") is authorised and regulated by the
Financial Conduct Authority in the United Kingdom. Peel Hunt is
acting solely as nominated adviser, under the AIM Rules, for the
Company and no one else in connection with the contents of this
announcement and will not regard any other person (whether or not a
recipient of this announcement) as its client in relation to the
contents of this announcement nor will it be responsible to anyone
other than the Company for providing the protections afforded to
its clients or for providing advice in relation to the contents of
this announcement. Apart from the responsibilities and liabilities,
if any, which may be imposed on Peel Hunt by the Financial Services
and Markets Act 2000, or the regulatory regime established
thereunder, Peel Hunt accepts no responsibility whatsoever, and
makes no representation or warranty, express or implied, for the
contents of this announcement including its accuracy, completeness
or verification or for any other statement made or purported to be
made by it, or on behalf of it, the Company or any other person, in
connection with the Company and the contents of this announcement,
whether as to the past or the future. Peel Hunt accordingly
disclaims all and any liability whatsoever, whether arising in
tort, contract or otherwise (save as referred to above), which it
might otherwise have in respect of the contents of this
announcement or any such statement.
In connection with the proposals referred to in this
announcement, Peel Hunt and its respective affiliates, may act as
investors for their own accounts, may subscribe for or purchase
ordinary shares in the Company and in that capacity may retain,
purchase, sell, offer to sell or otherwise deal for their own
accounts in such ordinary shares and other securities of the
Company or related investments in connection with such proposals or
otherwise. Accordingly, references to the ordinary shares being
offered, subscribed, acquired or otherwise dealt in should be read
as including any offer to, or subscription, acquisition, or dealing
by Peel Hunt and any of its respective affiliates acting as
investors for their own accounts. In addition, Peel Hunt or its
respective affiliates may enter into financing arrangements and
swaps in connection with which it or its affiliates may from time
to time acquire, hold or dispose of ordinary shares. Peel Hunt has
no intention to disclose the extent of any such investment or
transactions otherwise than in accordance with any legal or
regulatory obligations to do so.
This information is provided by RNS
The company news service from the London Stock Exchange
END
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