Business
Proposed acquisition of interests & notice of EGM
Proposed acquisition of interests & notice of EGM.
About this update from Sancus Lending Group Limited
[{"type":"text","content":"\n \nRNS Number : 2789Y GLI Finance Limited 16 May 2016 \n\n16 May 2016\nGLI Finance Limited\n(\"GLI\" or the \"Company\")\nProposed acquisition of interests in Sancus Gibraltar and BMS \nand simplification of the GLI group structure (the Proposals)\nand\nNotice of Extraordinary General Meeting\n \n \nGLI, an alternative finance provider to small and medium sized enterprises, is pleased to announce that the Company has entered into conditional share sale and purchase agreements in respect of the acquisition by the Company of certain interests in entities within the Sancus and BMS sub-groups of the Company (the Acquisitions). The move follows a strategic review of the Company's operations initiated by the Company's new CEO Andy Whelan in December 2015.\n \nThe Proposals do not require the approval of Shareholders. However, the Board would like to offer Shareholders the opportunity to consider what the Board believes is an important step in the development of the GLI's business. The Board recommends the Proposals to Shareholders as it is of the view that the transaction will simplify GLI's group structure, drive operational and financial efficiency, remove perceived conflicts and better position GLI for the further development and expansion of its niche lending businesses and platform portfolio. \n \nFollowing completion, the combined Sancus BMS Group is expected to make pre-tax profit of approximately £2.5 million in 2016, rising to approximately £4 million in 2017 when loan books are fully deployed, the businesses are fully integrated and increasing levels of commercial, operating and financial synergies are realised. The Board also sees potential for the Sancus BMS Group in terms of generating free cash flow to service future dividend payments to the Company's Ordinary Shareholders, with this free cash flow to be paid up to the Company. \nNotice of an Extraordinary General Meeting of the Company is therefore given, with the meeting to be held at the Company's registered office at 10.30am on 6th June 2016 for the purpose of considering, and if thought fit, approving the Proposals. A circular, including a notice convening the Extraordinary General Meeting (the Circular), will today be posted to Shareholders and a copy will also be made available to view on th...