The Paragon Group of companies confirmed it is in early-stage talks to buy Hampshire Trust Plc, a wholly-owned subsidiary of National Counties Building Society.
The Hampshire Trust is a short-term lender and savings bank based in Surrey and established in 1977.
Paragon said in a Stock Exchange update: “There is no certainty that the transaction will be concluded and at this stage we do not have anything further to add. We will update the market again when it is appropriate to do so.”
Paragon launched a £200m securitisation in mid-October, following its £150m issuance in November last year.
In its annual report out in November, The Paragon Group of Companies reported record profits of £95.5m after increasing lending 45% to September 2012.
Pre-tax profits rose 18% to £95.5m up from £80.8m in 2011.
