Registered in England and Wales. Company registration number: 04034645
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This site complies with Rule 26 of the AIM Rules for Companies. This website is owned by Merchant House Group Plc and hosted by Tinderhouse Limited. This section was updated on 3 November 2008.
22 February 08
Merchant House Group PLC
22 February 2008
22 February 2008
Merchant House Group plc
Leasing finance joint venture seeks new funding for further growth
AIM-quoted Merchant House Group plc (MHG) is pleased to announce that its
joint-venture asset and leasing finance business Merchant House Finance (MHF),
is to embark on a fundraising of up to £1 million to underpin further growth.
Merchant House Group holds a 49% stake in MHF, with an option to go to 75%. The
balance is held by Industrial Investment Group Limited, an established leasing
and asset finance business.
The cost of exercising the option to acquire up to 75% of MHF is based on a
multiple of distributable post tax profits of the joint venture as at December
31, 2009, with a top up mechanism of 10% of any increase in distributable
joint-venture profits in the two following years.
MHF is an associate company and one of five units within MHG, which has recently
announced a series of restructuring steps to enhance margins by increasing
deal-flow and reducing overheads. MHF specialises in providing or arranging
leasing and asset finance either as a principal or as an intermediary or
adviser.
MHF has recently completed a financing arrangement for Countryliner Ltd, a
Surrey based bus and coach operator, and completed the funding for the
acquisition of a small cruise ship for Scotland’s Majestic Line. Other recent
deals include a promissory note discounting for a major European airline and the
leasing of a super-yacht to the Chairman of a major PLC.
MHF also last month signed a new strategic partner agreement with The Practice
Loan Company plc to offer financing for legal practices and other professionals
seeking amounts of more than £250,000 to fund operating costs.
MHF Chief Executive John Lutterloch said: ‘We are very pleased with these recent
developments. They follow a maiden year of solid progress that has put in place
a team of 11 senior professionals to drive further growth, and a number of key
strategic partner agreements.’
Alongside MHF, MHG also comprises Merchant Capital Ltd, Merchant Stockbrokers
Ltd, Merchant Wealth Management Ltd, and Merchant Legal LLP – all structured to
minimise overheads and maximise the opportunity for cross-referrals.
For further information contact:
Martin Eberhardt, Chairman, Merchant House Group plc: 020 7332 2200
Alex Borrelli, Shore Capital and Corporate Limited: 020 7408 4090
Allan Piper, First City Financial Public Relations: 020 7242 2666