Business
Conditional Acquisition of 50.1% interest in PAL
Conditional Acquisition of 50.1% interest in PAL.
About this update from Manx Financial Group Plc
[{"type":"text","content":"\n \n \n \n THIS ANNOUNCEMENT CONTAINS INSIDE INFORMATION FOR THE PURPOSES OF THE MARKET ABUSE REGULATION (EU No. 596/2014) (\"MAR\"). UPON THE PUBLICATION OF THIS ANNOUNCEMENT VIA A REGULATORY INFORMATION SERVICE, THIS INSIDE INFORMATION IS NOW CONSIDERED TO BE IN THE PUBLIC DOMAIN.\n \n \n \n \n 16 May 2022\n \n \n \n \n \n \n \n \n \n Manx Financial Group PLC\n \n \n \n \n (\"MFG\" or the \"Company\")\n \n \n \n \n \n \n \n \n \n Conditional Acquisition of 50.1% interest in Payment Assist Limited\n \n \n \n \n Option to acquire remaining 49.9% interest\n \n \n \n Manx Financial Group PLC announces that Manx Ventures Limited (\"Manx Ventures\"), a wholly owned subsidiary of the Company, has agreed to acquire a 50.1% interest (the \"Acquisition\") in UK focused, point of sale lender Payment Assist Limited (\"Payment Assist\") for a total initial consideration of £4 million payable in cash. The Company has been working with Payment Assist since 2015, the Company's wholly owned subsidiary Conister Bank Limited (the Isle of Man's only independent bank) having provided the primary wholesale funding agreement to support Payment Assist's growth during this period. The Acquisition is conditional on the satisfaction of certain conditions precedent including approval of the change of control by the Financial Conduct Authority (\"FCA\"). In addition to the Acquisition, Manx Ventures has agreed an option to acquire the remaining 49.9% of Payment Assist for cash consideration of up to £5 million (the \"Option\"). The Option can be exercised by Manx Ventures at any time for a period of two years after publication by Payment Assist of its audited accounts for the period to 31 December 2024. MFG will fund the initial £4 million consideration and deferred consideration of up to £5 million from its cash resources.\n \n \n \n Commenting on the Acquisition, Douglas Grant, CEO of the Company commented:\n \n \"The joint venture with Payment Assist continues our strategy of acquiring interests in high quality specialist lenders.We have witnessed first-hand the growth of Payment Assist over the last 7 years and the Board believes that there is potential for significant further growth. The Acquisition, with no dilution to shareholders or external funding required, will position the Company to capitalise on what we expect to be a high margi...