£400m sale process founders on referendum fears

THE sale of financial services business Charter Court has been stopped after initial interest came laden with low valuations and talk of Brexit clauses.

Nervousness about the effects of an Out vote in the June referendum is being blamed for bids reportedly coming in around £50m below the £400m price sought by hedge fund owner Elliott Associates. Buyout firms BC Partners, Varde Partners and Warburg Pincus had tabled bids.

Charter Court Financial Services is a buy-to-let mortgage lender headquartered at Wolverhampton Business Park, where it employs around 350 people.

Ratings agency Moody’s is one of the organisations which has warned the UK’s credit status could be affected if it left the EU, which would have a knock-on effect on the housing market.

Charter Court was established in 2008 and owns the Exact and Precise Mortgage brands. It is now thought the sale process will be revisited in two or three years’ time.