REG - Manx Financial Group - Acquisition of 50.1% interest in Payment Assist

Manx FinancialAnnouncement

21/09/2022 07:01

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RNS Number : 0506A  Manx Financial Group PLC  21 September 2022

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.

21 September 2022

 

Manx Financial Group PLC

 

Acquisition of 50.1% interest in Payment Assist Limited

Option to acquire remaining 49.9% interest - Update

Following the announcement by Manx Financial Group PLC (the "Group") on 16 May
2022 regarding the agreement to acquire a 50.1% interest of Payment Assist
Limited ("Payment Assist") by Manx Ventures Limited ("Manx Ventures"), a
wholly owned subsidiary of the Group, we are pleased to announce the
acquisition of the initial 50.1% interest has now completed. As a result, the
Group will be able to consolidate 50.1% of Payment Assist's trading results
and any dividend payable for the final quarter of this year, and then
thereafter until the remaining 49.9% is acquired, at which point Payment
Assist will become fully integrated within the Group.

Following discussions among Manx Ventures and the current shareholders of
Payment Assist (being Neil Jeffrey, Colin Ellard, Spencer Wrench and Simon
Bevan - together the "Vendors"), the parties have agreed to certain amendments
to the terms of the acquisition, namely:

(i)         an increase in the consideration from £4 million to
£4.244 million; and

(ii)         an extension of the period by two years that the joint
venture will continue among Manx Ventures and the Vendors before Manx Ventures
may exercise the option to acquire the remaining 49.9% of Payment Assist's
issued shares held by the Vendors - the option will now be exercisable after
Payment Assist has declared a dividend for the financial year ended 31
December 2026.

The other principal terms of the share purchase agreement and option deed
remain as previously announced.

Payment Assist was set up by Neil Jeffery and Colin Ellard in 2013 to
capitalise on the opportunity in the automotive sector to improve garage
customer retention rates by providing a user-friendly method of enabling
customers to spread their payments over time. Payment Assist was granted its
FCA permission in October 2014. Pursuant to the acquisition, Neil Jeffery and
Colin Ellard will remain as directors of Payment Assist, whilst Douglas Grant,
Denham Eke and James Smeed will join the board with immediate effect.

Commenting on the acquisition, Douglas Grant, CEO of the Group stated: "We
have worked with Payment Assist for over seven years through our banking
subsidiary, Conister Bank Limited. During that time, we have developed an
ever-closer relationship, so a joint venture was the natural next step to
support Payment Assist achieve their growth ambitions. Their customer focused,
short-term lending products, were in great demand during the pandemic and are
equally as relevant today during these uncertain economic times. This is a
major acquisition for the Group, not only in terms of deploying our liquidity
safely, but also in continuing to progress our growth strategy."

Neil Jeffery, Chief Executive Officer of Payment Assist commented: "We are
delighted to have completed this transaction and to embark upon this exciting
new chapter. Having worked with Conister Bank for a number of years, we are
confident that this partnership will enable Payment Assist to continue to grow
as one of the leading point-of-sale lenders in the United Kingdom."

For further information:-

Manx Financial Group Plc - http://www.mfg.im/ (http://www.mfg.im/)

Payment Assist Limited - https://www.payment-assist.co.uk
(https://www.payment-assist.co.uk)

Further Information

For further information on the Company please contact:

 Manx Financial Group PLC             Beaumont Cornish Limited     Greentarget Limited
 Denham Eke, Executive Vice Chairman  Roland Cornish/James Biddle  Dafina Grapci-Penney

 Tel +44 (0)1624 694694               Tel +44 (0) 20 7628 3396     Tel +44 (0) 203 963 1887

 

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