Paragon acquires £43m of RBS unsecured loans
MORTGAGE group Paragon has expanded its business with the acquisition of a £43m portfolio of unsecured consumer loans from The Royal Bank of Scotland.
The Solihull-based group said the deal, 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, was worth £43.2m (calculated as £48.4m net of £5.2m cash received following the determination date of June 30, 2011).
The acquisition, the fourth completed by Paragon this year, is expected to be earnings enhancing in the current financial year.
Commenting on the acquisition, Nigel Terrington, chief executive of Paragon, said: “We are extremely pleased to announce a further loan portfolio acquisition through our investment division, Idem Capital. Our servicing division, Moorgate Loan Servicing, has managed this portfolio of loans for the last two years.
“Paragon, through Idem Capital, has made great progress with its strategy. This is the sixth portfolio acquired since mid-2009, of which four have been acquired in 2011, bringing the total investment to date to £89.5m. We continue to see further attractive portfolio acquisition opportunities.”
Paragon will announce its full year results on November 22, 2011.
