News
Countrywide agrees £2.7m Capital Private Finance purchase
Property giant Countrywide has exercised its call option to buy Mortgage Advice Bureau Holdings (MAB) out of its joint venture in high-end mortgage advice firm Capital Private Finance (CPF).
MAB, which reported its first full-year results this morning, is readying to sell its 49% stake back to Countrywide ending a five-year joint venture agreement.
CPF is a MAB Appointed Representative, providing mortgage and protection advice to customers of Countrywide’s premium real estate brands, including Hamptons International, John D Wood & Co., Faron Sutaria and UK Sotheby’s International Realty.
Completion is anticipated in early H2 2016.
MAB intends to declare a special dividend equivalent to the post-tax sale proceeds shortly after completion. This special dividend will equate to c. 4.25p per ordinary share.
In its trading statement, MAB said: “We anticipated that Countrywide may exercise this option and our expected minimum 15% compound annual growth in adviser numbers allows for the removal of the CPF Advisers from the Group.”
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Peter Curran, MD Financial Services at Countrywide, said: “Following a successful joint venture over a number of years, we have now reached a natural point in the cycle to bring Capital Private Finance fully into the Countrywide Group.
“This decision is in line with our strategy and focus on growth opportunities in London.”
Peter Brodnicki, MAB CEO said: “I was delighted to be asked by Countrywide back in 2011 for the group to set up and run a new mortgage broking business in London to service the premium estate agency brands that they had just acquired.
“It was a fantastic opportunity and an exciting challenge to build a 25 adviser business in the middle of a recession, and over the last five years we have really enjoyed working with Countrywide, their estate agency teams, and a great group of advisers.
“This was always going to be a five-year plan, and over the next four months we will be preparing to hand the business over completely to Countrywide. Some exciting times are ahead for everybody involved in Capital Private Finance, and we would like to thank you all for your support and wish you continued success in the future.”