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PCFG plans fundraising via capital increase
Posted on Monday, 20 March 2017 14:25
UK personal and commercial vehicle, plant and equipment credit lending company Private & Commercial Finance Group (PCFG) has announced an offering valued at GBP 10.50 million in order to maintain its level of regulatory capital and liquidity, as well as to fund general working capital requirements.
The business is issuing 42.00 million stocks, representing a 19.8 per cent stake in the group’s enlarged capital, to Bermuda Commercial Bank, directors and institutional investors at GBP 0.25 apiece.
Panmure Gordon, Stockdale Securities and Tavistock Communications are all advising on the cash call, with the shares expected to be admitted to trading on 7th April 2017.
Scott Maybury, chief executive of PCFG, noted: "This capital will allow us to fund new business initiatives and portfolio growth over the medium term and operate within the predetermined capital and liquidity models agreed with the Prudential Regulation Authority and Financial Conduct Authority.
“Our shareholders recognise the potential increase in scale offered by the retail deposit-taking licence, with our targets set at a portfolio size of GBP 350.00 million after three years and GBP 750.00 million after five years, a significant increase on current levels of c. GBP 120.00 million.”
London-headquartered PCFG provides both hire purchase and finance lease facilities to consumers and businesses throughout the UK.
The firm, which was formerly known as the Asset Management Corporation, listed on London’s Aim exchange in 1998.
PCFG posted a turnover and net profit of GBP 77.82 million and GBP 4.02 million, respectively, in the 18 months ended 30th September 2016.
According to Zephyr, the M&A database published by Bureau van Dijk, there have been 42 deals targeting consumer lenders announced worldwide so far in 2017.
The largest of these was China-based Beijing Enterprises Group Finance’s CNY 1.35 billion (USD 195.70 million) cash call in February.
Other targets include Compania Financiera Argentina, Manappuram Finance and Xi'an Galaxy Network Microfinance.
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