REG - Mortgage Adv. Bureau - Related Party Transaction

Mortgage Advice Bureau (Holdings)Announcement

29/05/2024 07:00

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RNS Number : 1722Q  Mortgage Advice Bureau (Hldgs) PLC  29 May 2024

29 May 2024

Mortgage Advice Bureau (Holdings) plc ("MAB" or "the Company")

Purchase of remaining 20% of First Mortgage Direct Limited and associated
Issue of Equity

Mortgage Advice Bureau (Holdings) plc (AIM:MAB1.L) announces that further to
the acquisition of 80% of First Mortgage Direct Limited ("First Mortgage") on
2 July 2019, MAB has now exercised its option to acquire the remaining 20% of
the entire issued share capital of First Mortgage for a consideration of
£9.35 million (the "Consideration") from Ian McGrail, Managing Director of
First Mortgage.

Under the terms of the put and call option agreement, the Company has
exercised its discretion to satisfy 25% of the Consideration in cash, being
£2.34 million, and 75% of the Consideration, being £7.01 million, by the
issue of new ordinary shares in the Company using an agreed formula. The
Company has therefore issued 804,754 Ordinary Shares of 0.1p each in the
capital of the Company (the "New Ordinary Shares").

Application has been made for the New Ordinary Shares to be admitted to
trading on AIM ("Admission"). It is expected that Admission will become
effective and trading will commence at 8:00am on 3 June 2024. The New Ordinary
Shares will rank pari passu in all respects with the Company's existing
ordinary shares in issue.

Following Admission, the total number of ordinary shares in the Company with
voting rights in issue will be 57,956,789. This figure may be used by
shareholders as the denominator for the calculations by which they will
determine if they are required to notify their interest in, or a change to
their interest in, the Company under the Financial Conduct Authority's
Disclosure and Transparency Rules.

First Mortgage made a profit before tax of £5.4 million in the year ended 31
December 2023, and had net assets of £9.3 million as at 31 December 2023.
As Ian McGrail is a director of First Mortgage, the acquisition of the
remaining 20% of First Mortgage constitutes a related party transaction under
the AIM Rules.  The Directors of MAB consider, having consulted with its
nominated adviser, that the terms of the transaction are fair and reasonable
insofar as its shareholders are concerned.  Ian McGrail will continue to be
Managing Director of First Mortgage. This transaction is expected to be
earnings enhancing for MAB.

Ben Thompson, Deputy CEO, commented:

"Acquiring an 80% shareholding in First Mortgage in 2019 was strategically
important to MAB at the time, enabling us to grow our expertise in specific
market specialisms such as new build, and accelerate our overall market share
as a Group. Despite the various challenges we all faced together over the last
five years, the business has grown substantially in size and in profitability
and has become even more important to MAB. We are therefore really pleased to
have now acquired the final 20% shareholding from Ian McGrail. Importantly, we
are delighted that Ian has decided to commit to stay on as Managing Director
and take First Mortgage further over the coming years, having done such an
excellent job of the last five, and indeed the years prior to that."

Enquiries:

 Mortgage Advice Bureau (Holdings)                                                                                        +44 (0)1332 525007
 plc

 Peter Brodnicki, Chief Executive Officer

 Ben Thompson, Deputy Chief Executive Officer

 Emilie McCarthy, Chief Financial Officer

 Nominated Adviser and Joint Broker:

 Deutsche Numis                                                                                                          +44 (0)20 7260 1000

 Stephen Westgate / Giles Rolls

 Joint Broker:

 Peel Hunt LLP                                                                                                          +44 (0) 20 7418 8900

 Andrew Buchanan / Oliver Jackson / Rob Parker
 Media Enquiries:

 investorrelations@mab.org.uk

 

This announcement contains inside information as defined in Article 7 of
Regulation (EU) no 596/2014 of the European Parliament and of the Council of
16 April 2014 on Market Abuse (Market Abuse Regulation) as retained as part of
UK law by virtue of the European Union (Withdrawal) Act 2018 as amended.

Upon the publication of this announcement, this inside information is now
considered to be in the public domain.

 

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