In addition a further £250,000 of Redeemable Convertible Preference Shares are to be subscribed for by MBS in cash.
The Company at the same time announced that an extraordinary general meeting of the Company will be held at Botleys Mansion on 9 December 2008 at 10.30am, when shareholders will be asked to consider proposed Special Resolutions:
to increase the authorised share capital of Network Data Holdings by creating a class of Redeemable Convertible Preference Shares;
to adopt new Articles of Association setting out the rights attached to the Redeemable Convertible Preference Shares; and
to authorise the directors to allot the Redeemable Convertible Preference Shares to the Manchester Building Society without first offering them to the holders of ordinary shares in Network Data.
Commenting on the Acquisition, Richard Griffiths, Chief Executive of Network Data said: "We are delighted to have completed the largest merger of two mortgage networks since the inception of FSA regulation of the mortgage market four years ago in October 2004. Consolidation of the networks market is long overdue, and we expect the trend to accelerate with many of the smaller networks struggling in the current weak market conditions. As the largest mortgage network we intend to play our part in this process and take advantage of the cost saving opportunities. We are pleased to welcome the Manchester Building Society as a significant shareholder in Network Data Holdings."
