This follows the successful first two years of the partnership between the two leading specialist lending businesses.
Kensington will pay an initial consideration of £13.1m for its additional 37.5% stake in Money Partners and, depending on the performance of the business, may pay additional deferred consideration in 2009. Kensington retains an option to acquire the balance of the Money Partner’s shares in 2009
Money Partners intermediary distribution has proven to be complementary to that of Kensington and the business will continue to operate autonomously, generating significant and incremental new mortgage volumes with its broad and competitive range of first and second charge products for specialist borrowers and its strong reputation for service via its valued intermediary partners.
John Maltby, chief executive officer of Kensington Group plc, said: “We have decided to increase our stake in Money Partners as we have been encouraged by the performance of the business and its ability to generate incremental new mortgage volumes. The acceleration of the existing call option agreements gives us an increased share of Money Partners profits and fee income, as well as further alignment with the other Money Partners investors.”
Colin Sanders, chief executive officer of Money Partners said: “We’re delighted with this transaction. It’s a strong endorsement of the success of the Money Partners model and of our partnership with Kensington. Going forward, we will continue to grow the Money Partners brand independently by building a profitable business that benefits from the unique advantages of our joint venture.”
