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13 Nov 2008 16:38
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13thΒ NovemberΒ 2008Β
ConisterΒ Financial GroupΒ plc
("CFG" or the "Company")
On 29 September 2008,Β the Company announced that it had agreed to dispose of 51% ofΒ its pre-paid card subsidiary,Β TransSendΒ Holdings Ltd ("TransSend"), by way ofΒ 10% to Altair Financial Services International Plc ("Altair") and 41% to Equity Special Situations Limited ("ESS"), the latter havingΒ a minority shareholding in Altair.
Following the suspension of ESS on 15 October 2008, the Company notes theΒ announcementΒ made by ESS on 7 November 2008,Β concerning theirΒ financial position which includes the following paragraph:
"Should ESS fail to reach agreement with its creditors and debt providers and/or fail to raise the necessary funds from the sale of certain assets, it is likely that the Directors will be forced to take steps to seek formal protection from the Company's creditors."
The Company is in the process of reviewing the implications as regards the TransSend disposal. Given the circumstances, it is notΒ nowΒ possible to progress theΒ operational milestonesΒ (including the granting of an FSA e-money licence to TransSend)Β withinΒ the stipulatedΒ sixΒ months of the agreement.Β
The Company, as a result of other transactions announced earlier this year, holds 4,248,795 ordinary shares in ESS representing 18.6% of theirΒ issued share capital.Β Given the announcement by ESS,Β the BoardΒ of CFGΒ is thereforeΒ consideringΒ the value ofΒ theΒ ESS holding,Β acquired by a share-for-share exchangeΒ with a minimal cash top-up,Β andΒ whetherΒ anyΒ diminution in valueΒ needs to beΒ determined in consultation with the Company's Auditors.
The shares held in ESSΒ doΒ notΒ formΒ part ofΒ CFG'sΒ banking operation subsidiary'sΒ regulatory capital. Conister TrustΒ Ltd, the bank,Β remainsΒ separately andΒ well capitalised with a Tier 1 capitalΒ assetΒ ratio of 19.3% which compares very favourably against the average ofΒ UKΒ banks of 5.5%.
The Company will make a further announcement when it has determined the appropriate course of action, which may include legalΒ redressΒ if appropriate, and also the opportunity to potentially reverse the share-swap transactions,Β in relation to the above matters.
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For further information, please contact: |
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Conister Financial Group plc Arron F A Banks / Chris Johnstone Tel 07918 608480 |
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Beaumont Cornish Limited Roland CornishΒ Tel +44 (0) 20 7628 3396Β |
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Britton Financial PR Tim BlackstoneTelΒ Β 07957 140416 |
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