22/06/1990

Anglo deal clears way for B&C disposal

SUMMIT, the private financial services company which is buying Anglo Leasing from the Anglo group for £120m, has combined its financing packaging with arrangements which allow British & Commonwealth to dispose of a 28.7 per cent stake in the company.

Summit is raising the £120m via an issue of convertible redeemable preference shares to its existing shareholders, together with a group of new institutional shareholders led by Electra Kingsway. Subscriptions for the issue take place in two instalments.

Existing Summit shareholders who are putting up new money include General Electric Company (39.2 per cent), the ECI funds, Murray Johnstone funds, Eagle Star and Gartmore Venture Capital. The new investors take in Electra Private Equity Partners. Standard Life, CIN Venture Managers, Scottish Amicable, and General Electric Investment Corporation.

However, besides providing the acquisition finance existing and new shareholders will also acquire the shares in Summit currently held by B&C, the troubled financial services group which recently went into administration.

Summit said yesterday that this arrangement should raise an initial £14.7m for B&C. However, it explained that the institutions were holding the shares as a “warehousing” operation. The eventual intention was to bring a significant new investor into the group. If this resulted in the B&C stake being sold on at a profit, B&C would share in the uplift.

Summit has a complicated history. It was formed in 1985, when Mr Kit Hunter Gordon and Mr Barry Sack bought out Aurit Services from J. Rothschild Holdings with the aid-of Comcap. GEC came in with a 40 per cent and Comcap was then acquired by Atlantic Computers. B&C subsequently purchased Atlantic – the main cause of the group’s eventual downfall and, as a result, ended up with a stake in Summit.