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Bids, Mergers and Takeovers

S & U to sell its home credit business for £82.5m

07 July 2015 12:57

S & U has entered into a conditional agreement to sell its home credit business which trades as Loansathome4u, to Non-Standard Financefor a total cash consideration of £82.5m.

The proposed disposal will allow for £34m of investment into expanding Advantage and £13m for the development of Advantage's nascent SME vehicle lending product.

The intention is for a significant return of capital and possible future distributions to shareholders.

Anthony Coombs, S & U's chairman, said: "The recent unsolicited approach from Non-Standard Finance plc for our home credit business led the Board to reconsider the Group's future strategy.

"The Board believes that there are significant benefits from the sale of Loansathome4u for realising fair value for our shareholders; but also significant opportunities to further accelerate the expansion of Advantage and develop its nascent small business vehicle lending products, as well as other higher growth areas of specialist finance.

"It is our intention to make a significant return of capital once we have concluded our assessment of reinvestment options and following discussions with the Company's shareholders."

John van Kuffeler, NSF's hairman, said: "Loansathome4u is a leading player in the home collected-credit market. It provides us with a well-established platform; a growing business; attractive operating margins and return on assets; and will form a strong base for NSF as we grow organically and acquire new businesses."

At 12:57pm:

(LON:NSF) Nonstandard Finance Plc Ord Gbp0.05 share price was +1.25p at 102.75p

(LON:SUS) S U PLC share price was +181.5p at 2462.5p

Story provided by StockMarketWire.com

Related Company: SUS

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