Manx Financial Group PLC Acquisition of Additional Interest in Beer Swaps (5843E)
March 02 2020 - 1:00AM
UK Regulatory
TIDMMFX
RNS Number : 5843E
Manx Financial Group PLC
02 March 2020
FOR IMMEDIATE RELEASE 2 March 2020
Manx Financial Group PLC (the "Group")
Acquisition of an Additional Shareholding in Beer Swaps
Limited
In 2018, Conister Bank Limited, a wholly owned subsidiary of
Manx Financial Group PLC, acquired 20% of the issued capital of
Beer Swaps Limited ("BSL"), trading as Ninkasi Brewkit Rentals.
BSL, formed in 2015 and based in Ledbury, provides equipment
finance and rental products to UK based craft and
micro-breweries.
The agreement entered into with BSL in 2018 included an option
to acquire the remaining shares by April 2021. The Group now
announces that Conister Bank Limited ("Conister"), a wholly-owned
subsidiary, intends to acquire further shares in BSL to increase
its ordinary shareholding to 75% for a cash consideration of
approximately GBP0.5 million (the "Transaction") . Further,
Conister will simplify the capital structure of BSL by repaying all
director loans, being GBP0.1 million and all issued preference
shares, being GBP0.2 million, as part of the Transaction. For the
year ended 31 March 2019, BSL reported turnover of GBP0.4 million
and a profit before tax of GBP0.1 million with net assets of GBP0.2
million.
The Transaction has been approved by the Isle of Man Financial
Services Authority.
This further acquisition strengthens Conister's strategy of
developing a network of niche loan brokers within the UK. BSL has
developed an impressive customer base within the brewing industry
with a considerable potential for further expansion by offering
flexible hire and equipment purchase terms.
The independent Directors (being all the Directors with the
exception of James Mellon and Denham Eke), have carefully
considered the most suitable method of securing the Regulatory
Capital required by Conister, both to maintain and continue the
excellent growth, and to take advantage of further acquisition and
lending opportunities. Although Conister enjoys high levels of
liquidity from customers' deposits, this liquidity must be
underpinned by its own separate capital on the basis of a ratio as
directed under the Isle of Man banking licence. As a result, and
having considered other methods of raising capital, the independent
Directors have resolved, following negotiation, to accept on
standard commercial terms, a GBP1.0 million loan for five years to
26 February 2025, with a coupon of 5.4% and no conversion rights,
from Burnbrae Limited ("Burnbrae"), a party connected with Jim
Mellon and Denham Eke (the "Burnbrae Loan"). In addition, the
independent directors have negotiated a further renewal of the
GBP1.25 million convertible loan note from James Mellon for five
years to 26 February 2025 at a reduced interest rate of 5.4%, down
from the previous 6.5%. All other terms remain as those announced
on 2 March 2010 (the "Mellon Loan"). The independent directors
(being all directors other than John Banks) have also approved the
extension for a further two months to 26 April 2020 of a
convertible loan note of GBP460,000 at an interest rate of 6.5%,
held by Southern Rock Insurance Company Limited ("SRICL"), due for
repayment on 26 February 2020. All other terms remain as those
announced on 2 March 2010 ("SRICL Loan").
AIM Rule 13
Due to James Mellon and Denham Eke both being directors of
Burnbrae, the provision of the Mellon Loan and the Burnbrae Loan
are Related Party Transactions under the AIM Rules. Accordingly,
the independent Directors for this, being Greg Bailey, John Banks,
Alan Clarke, David Gibson and Douglas Grant, consider, after
consulting the Group's Nominated Adviser, that the terms of the
Burnbrae Loan and Mellon Loan are fair and reasonable insofar as
the Group's shareholders are concerned. Due to John Banks being a
director of SRICL, the extension of the SRICL Loan is a Related
Party Transaction under AIM Rules. Accordingly, the independent
Directors for this, being Jim Mellon, Greg Bailey, Alan Clarke,
Denham Eke, David Gibson and Douglas Grant, consider, after
consulting the Group's Nominated Adviser, that the terms of the
SRICL Loan are fair and reasonable insofar as the Group's
shareholders are concerned.
This announcement contains inside information for the purposes
of Article 7 of EU Regulation No. 596/2014 on market abuse. Upon
the publication of this announcement via a Regulatory Information
Service, this inside information is now considered to be in the
public domain.
For further information, please contact: -
Manx Financial Group Beaumont Cornish Limited Britton Financial PR
PLC Roland Cornish/James Tim Blackstone
Denham Eke, Chief Executive Biddle Tel +44 (0) 7957 140416
Tel +44 (0)1624 694694 Tel +44 (0) 20 7628
3396
ENDS
This information is provided by RNS, the news service of the
London Stock Exchange. RNS is approved by the Financial Conduct
Authority to act as a Primary Information Provider in the United
Kingdom. Terms and conditions relating to the use and distribution
of this information may apply. For further information, please
contact rns@lseg.com or visit www.rns.com.
END
ACQPPUCGPUPUPUR
(END) Dow Jones Newswires
March 02, 2020 02:00 ET (07:00 GMT)
Manx Financial (LSE:MFX)
Historical Stock Chart
From Jun 2024 to Jul 2024
Manx Financial (LSE:MFX)
Historical Stock Chart
From Jul 2023 to Jul 2024