Acquisition of portfolio

RNS Number : 3119L

Paragon Group Of Companies PLC

03 September 2012

 



RNS Announcement

Acquisition of portfolio

The Paragon Group of Companies PLC ("Paragon") is pleased to announce the acquisition of a further portfolio of closed UK consumer credit card receivables from MBNA Europe Bank Limited.

The consideration, which is being financed from Paragon's cash reserves and represents the value at which the acquired receivables will be taken on to the Group's balance sheet, is expected to be £16.2 million (but will be a maximum of £16.9 million), payable at completion on 10 September. The acquisition is expected to be earnings enhancing to Paragon in the current financial year.

This acquisition follows Idem's previous acquisition of a portfolio of closed UK consumer credit card receivables from MBNA Europe Bank Limited announced on 19 December 2011, for the consideration of £55.7 million.

Commenting on today's acquisition, Nigel Terrington, Chief Executive of Paragon, said: "This is the eighth transaction by Idem Capital and brings the total investment in the current financial year up to an expected £115.7 million, resulting in the division becoming an increasingly large part of the Group's activities.  Idem Capital was the UK's second largest buyer of consumer loan portfolios in 2011 and we continue to see attractive portfolio acquisition opportunities with the banking and financial sectors increasingly seeking to de-leverage their balance sheets."

For further information, please contact:

Nigel S Terrington, Chief Executive 0121 712 2024

Nick Keen, Finance Director, 0121 712 2000

 

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