Its update to the London Stock Exchange said under the possible all share offer, PCF shareholders would have a minority position in the combined group.
The group includes the subsidiary PCF Bank, which offers bridging loans, asset finance loans and retail banking services.
It also has the brands The Asset Management Corporation and PCF Business Finance, which issues development finance loans, SME loans and lends to property investors.
The announcement was made without Castle Trust’s approval and the bank declined to comment when approached by Specialist Lending Solutions.
PCF said Castle Trust should announce its firm intention to make an offer for the group by 28 June or confirm that it will not bid for the company.
The announcement commenced the offer period according to market regulatory rules.
PCF’s losses soften
PCF also announced its financial results for the year to 30 September 2021. It reported a statutory loss of £3.1m, which was a softening of the £5.1m loss it saw in 2020.
New loan origination amounted to £187m, down from £272m the year before.
The group also announced that the suspension of the trading of its shares ended on 1 April. This was temporarily halted last year after it delayed the publication of its financial results.
At the time, it said it was unable to publish audited results due to “logistical reasons”.
PCF shares resumed trading at 7p, giving the company a market capitalisation of £21.3m.