LONDON (ShareCast) - (Sharecast News) - Manx Financial Group announced on Monday that its Manx Ventures subsidiary has agreed to acquire a 50.1% interest in UK-focussed point-of-sale lender Payment Assist for initial consideration of £4m cash.
The AIM-traded firm had been working with Payment Assist since 2015, with its wholly-owned Conister Bank subsidiary providing the primary wholesale funding agreement to support Payment Assist's growth.

It said the acquisition remained conditional on the satisfaction of certain conditions, including approval of the change of control by the Financial Conduct Authority.

In addition to the Acquisition, Manx Ventures agreed an option to acquire the remaining 49.9% of Payment Assist for up to £5m in cash.

The option could be exercised by Manx Ventures at any time within two years of Payment Assist publishing its audited accounts for the year ending 31 December 2024.

Manx Financial Group said it would fund the initial £4m consideration and deferred consideration of up to £5m from its cash resources.

"The joint venture with Payment Assist continues our strategy of acquiring interests in high quality specialist lenders," said chief executive officer Douglas Grant.

"We have witnessed first-hand the growth of Payment Assist over the last seven years, and the board believes that there is potential for significant further growth.

"The acquisition, with no dilution to shareholders or external funding required, will position the company to capitalise on what we expect to be a high margin and profitable business now and in the future."

Grant added that the option positioned the company to acquire the remaining 49.9% of Payment Assist at an "attractive" valuation if the business grew as the company expected over the next three years.

"We have started the process of engaging with the FCA to obtain their approval for the proposed change of control and will make an announcement to update the market once this is received."

At 1026 BST, shares in Manx Financial Group were down 5.88% at 8p.

Reporting by Josh White at Sharecast.com.

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