Acquisition of Loans

RNS Number : 9764C

Paragon Group Of Companies PLC

09 May 2012

 



Acquisition of Loans

The Paragon Group of Companies PLC ("Paragon") announces the acquisition of further unsecured consumer loans, through its Idem Capital Securities subsidiary, from The Royal Bank of Scotland PLC under the terms of a forward flow agreement. The consideration, which is being financed from Paragon's cash reserves and which represents the value at which the acquired loans will be taken on to the Group's balance sheet, is £56,000. The investment is expected to be earnings enhancing in the current financial year.  It is anticipated that there will be opportunities to make further modest acquisitions under the agreement and these will be announced as they occur.

The acquisition follows the announcement, on 27 October 2011, of the acquisition of a portfolio of loans from The Royal Bank of Scotland PLC for consideration of £43.2 million and subsequent announcements of further modest acquisitions of unsecured consumer loans from time to time under the forward flow agreement. 

Whilst the transaction value is considered by Paragon to be modest, LR10.2.10 requires the aggregation of all transactions between Paragon and The Royal Bank of Scotland PLC during the past twelve months in classifying this transaction. 

For further information, please contact:

John G Gemmell

Group Company Secretary      

0121 712 2075

 

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