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Secure Trust Bank to purchase V12 Group

UK based retail lender Secure Trust Bank (STB), a 70.7% owned subsidiary of Arbuthnot Banking Group has agreed to purchase V12 Group including V12 Retail Finance and V12 Personal Finance, for an undisclosed sum.

V12 Group together with its subsidiaries offers retail point of sale loans, normally for 12 months on an unsecured basis to prime borrowers.

The business unit, which is being acquired, is complementary to STB’s current retail finance portfolio and will continue to operate under the V12 brand name.

Based on the terms of the agreement, STB will buy entire issued share capital of the V12 Group and the existing loan book which had balances of about £35m.

Following completion of transaction, which is scheduled on 2nd January 2013, the acquirer will immediately infuse some capital so that V12 can fully redeem £7m of subordinated debt principally held by Jon Moulton.

It will also provide required capital to V12 to repay its existing bank loan from The Royal Bank of Scotland, which stood at nearly £28.5m.

Secure Trust Bank chief executive officer Paul Lynam said the acquisition provides the bank with critical mass and ownership of a technology-based platform necessary to provide consumers with in store and online point of sale finance.