LONDON (Alliance News) - GLI Finance Ltd said Tuesday its subsidiary, BMS Finance SARL, has agreed to sell the entirety of its loan assets at book value.
BMS Finance, which GLI owns a 30.3% stake in, has entered into an agreement with BPC Ireland Lending Designated Activity Co, a fund managed by Beach Point Capital DAC, to sell all of its loan assets.
For the year ended 2017, BMS had gross assets of EUR25.4 million and GLI expects to receive a cash consideration of GBP7.0 million from the sale.
GLI expects the sale to go through no later than August 1.
GLI will have to pay GBP275,000 to BMS Finance AB Ltd, which is a wholly-owned subsidiary of GLI, as BMS AB will cease to be the investment adviser to BMS Ireland upon completion of the transaction.
Several employees from BMS AB will be moving to Beach Point Capital as part of the deal. One of those employess will be selling his entire holding of 3.9 million GLI shares to Sancus BMS Group Ltd, a wholly-owned subsidiary of GLI.
Sancus BMS will have an interest in 9.5 million GLI shares, representing 3.0% of the company's issued share capital.
Shares in GLI Finance were down 4.3% Tuesday at 8.61 pence each.