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Sancus (Gibraltar) Limited has agreed to be acquired by GLI Finance Limited for £23.5m, with £10m in bonds and £13.5m in equity. The deal has had shareholder approval and an anticipated completion date of the end of June.
Sancus (Gibraltar) Limited became operational in July 2015 and has loaned over £35m within the past year, servicing local SMEs and high net worth individuals seeking finance.
GLI Finance, which is based in Guernsey and listed on the Alternative Investment Market, is a leading investor in the global alternative finance sector, focusing on small and medium enterprises (SME) lending. GLI has niche core lending businesses and a portfolio of FinTech lending platforms spread across 3 continents. It is also a co-owner of Amberton Asset Management with Somerston Holdings Limited, who is also a strategic investor in GLI Finance.
Following completion, Sancus Group Limited, a wholly owned subsidiary of GLI Finance, will be the sole shareholder of the Jersey, Guernsey and Gibraltar subsidiaries of Sancus. The acquisition is part of GLI's strategy of creating a niche profitable SME alternative lending business which will be consolidated under one brand "Sancus BMS". The bonds to be issued in connection with the Sancus (Gibraltar) Limited acquisition will be listed on the Cayman Islands Stock Exchange and the issue will be handled by UK Bond Network and further information is available on their platform, www.ukbondnetwork.com/GLIFinance.
Sancus (Gibraltar) Limited's Managing Director, Stephen O'Brien commented: "I am thrilled to be formally joining Sancus BMS Group as part of the larger GLI business. Sancus Gibraltar will continue to operate as usual, providing much needed financial support in the local economy."
Andrew Whelan, CEO of GLI Finance Limited, said: "The acquisition of Sancus (Gibraltar) Limited will help to create one unified lending business under our new Sancus BMS brand. This is key to our overall long-term growth strategy and an exciting development in our Group."
The alternative finance industry is a growing industry worldwide, addressing the demand for funding created by the retrenchment of traditional lenders. As a marketplace lender, Sancus delivers secured finance to both small-medium enterprises (SMEs) and high net worth individuals (HNWIs), whilst managing the associated risks for both borrowers and co-lenders. Borrowers have access to a simple, bespoke and efficient alternative service. Co-lenders are primarily institutions, family offices, high net worth individuals and private clients who are seeking alternative investments to the current low interest rates available from traditional banking sources, portfolio diversification, as well as those who remain uncomfortable with the volatility associated with either equity or bond exposure.
