City of London Group PLC Milton Homes sale (7574K)
September 06 2021 - 1:00AM
UK Regulatory
TIDMCIN
RNS Number : 7574K
City of London Group PLC
06 September 2021
CITY OF LONDON GROUP PLC
("COLG" or "the Company")
Milton Homes sale
Following the announcement on 23(rd) August 2021, the Board of
COLG (AIM:CIN) is pleased to announce today that it has signed a
sale and purchase agreement for the sale of Milton Homes Limited
("Milton").
COLG has entered into an agreement to sell the entire issued
share capital of Milton and its wholly owned subsidiaries to Max
Barney Investments Limited ("MB") for a total consideration of
GBP9.3 million (the "Disposal").
The net proceeds from the Disposal are intended to contribute to
the regulatory capital of its subsidiary Recognise Bank Limited.
This sale is in line with the Company's approach to develop a new
UK SME bank.
The Disposal is conditional on receiving regulatory approval
from the Financial Conduct Authority of the change in control of
Milton and of its lender. The Disposal is classified as a
substantial transaction under AIM Rule 12. In the financial year
ended 31 March 2020, Milton reported profit before tax of (GBP2.6)
million, had total assets of GBP69.3 million and net assets of GBP2
million.
The consideration of GBP9.3 million will be funded by way (i)
the acquisition and cancellation of an intercompany loan of GBP7.8
million between the Company and Milton by HPB Pension Trust, an
entity associated with MB, which will occur immediately; (ii) a
payment of GBP1.2 million by MH to the Company utilising excess
cash on its balance sheet which will occur immediately and (ii) a
payment of GBP0.25m by MB to the Company which will occur on
completion.
Related Party Transaction
MB and HPB Pension Trust are deemed to be related parties of
COLG under the AIM Rules for Companies, as it holds in excess of
10% of the total voting rights of the Company. As such, the
Disposal constitutes a related party transaction under Rule 13 of
the AIM Rules for Companies (the "Related Party Transactions").
The independent directors of the Company, having consulted with
Peel Hunt LLP in its capacity as the Company's nominated adviser
for the purposes of the AIM Rules, consider the terms of the
Related Party Transactions to be fair and reasonable insofar as the
Company's shareholders are concerned.
LEI: 2138003UW63TMQ5ZFD85
Enquiries
C ity of London Group plc
Michael Goldstein, Chief Executive Officer +44 (0)20 3988 6501
Ben Peters, Director of Investor Relations +44 (0)20 3988 6500
Peel Hunt LLP (Nominated Adviser and
Joint Broker) +44 (0)20 7418 8900
James Britton, Rishi Shah
For media enquiries, please contact:
Heather Armstrong heather.armstrong@tavistock.co.uk
Tim Pearson / 07929-116860
Or email colg@tavistock.co.uk
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END
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