An auction of Precise Mortgage’s parent company Charter Court Financial Services has collapsed after the company failed to achieve its desired sale price of £400m.
Sky News reported the sale had fallen through after bidders were informed the auction had been abandoned.
Sources close to the deal confirmed bids in the range of 10 to 15% below the asking price were being tabled by buyout firms. This caused Elliot Associates, the hedge fund which set the price, to withdraw Charter Court from proceedings.
Elliot, which owns a controlling stake in Charter Court, will retain ownership until it lists the company on the stock market. This is expected to be in two to three years’ time.
Weeks before the sale collapse, private equity firms interested in buying Charter Court floated the idea of inserting a clause into the deal, relating to June’s European Union referendum, during negotiations.
