Last checked at 19 Nov 2008 09:19
11 November 2008
Manchester Building Society
Acquisition of the Society's wholly owned subsidiary, Mortgage Broking Services Limited ("MBSL") by Network Data Holdings plc ("NDH"), to be satisfied for a consideration of £2,215,000 by the issue of Redeemable Convertible Preference Shares to the Society. The Society also to subscribe in cash for a further £250,000 of preference shares.
The Board of Manchester Building Society reports the agreement signed today for the sale of its mortgage network subsidiary, MBSL, to NDH. Consideration of £2,215,000 is to satisfied by the issue to the Society, following an NDH Extraordinary Meeting convened for 9th December 2008, of 2,215,000 £1 Convertible Redeemable Preference Shares in NDH. In addition, the Society is to subscribe for a further 250,000 £1 Preference Shares. The Preference Shares carry a cumulative gross coupon of 8% and are redeemable in five equal six monthly instalments between 31 December 2011 and 31 December 2013. Conversion rights in NDH ordinary shares can be exercised subject to two months notice prior to each redemption instalment date.
The Society's Chief Executive, David Cowie, commented:
"In particularly difficult conditions for the housing market, consolidation of mortgage networks makes considerable sense. The merger of MBSL into Network Data reinforces Network Data as one of the leading dedicated mortgage networks and the greater economies of scale that this agreement engenders represents good news for Network Data, for the Society as an investor in Network Data and for MBSL's Appointed Representative members."
Enquiries
David Cowie
Chief Executive, Manchester Building Society 0161 923 8000
Chris Gee
Finance Director, Manchester Building Society 0161 923 8000