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PCF Group pulls out of UK banking market and cancels listing as lender fails to raise growth capital
- PCF to investigate ‘strategic transactions with bona fide interested third parties’
- Castle Trust Capital was ready to take over the struggling lender
PCF Group will pull out of the UK banking market after the lender’s attempts to raise new capital and seek other options failed.
PCF told investors on Wednesday that it will not resume lending and while it would continue to examine “strategic transactions with bona fide interested third parties,” it will now begin winding down its loan and savings portfolio positions and seek to lower its cost base.
The FTSE AIM All-Share group, which plans to delist, was set to be acquired by Castle Trust Capital in May, but the suitor ultimately chose to withdraw its offer in September.
PCF Group obtained a banking license in 2016
Castle Trust’s initial approach to PCF, which will “at some point” “sell all or part” of its loan portfolio, came in the wake of the lender’s stock suspension after its 13-year general manager suddenly resigned prior reviewing its loan portfolio. ‘financial controls and reporting processes’.
PCF Shares fell more than 40 percent last week after news it would try to raise growth capital and explore “transactional opportunities.”
The group said regulators and its major shareholder Somers were aware of its plans.
PCF Bank chief executive Garry Stran said: “This was a very difficult strategic decision for the Board of Directors, given the implications for the company, colleagues, customers, intermediaries and shareholders.
This is particularly the case given the significant progress made over the past 18 months to resolve the issues that led to the suspension of trading in the Group’s shares in May 2021 and the work undertaken to secure growth financing. or promote other transaction strategies to deliver a growing and sustainable value proposition for all our stakeholders.”
PCF Bank was founded in 1994 and focused on auto financing, SME asset financing and real estate financing.
According to its website, PCF was cleared to operate as a bank in December 2016, “backed by more than 25 years of solid growth, both organically and through acquisitions.”
It claims to have had a financial portfolio worth over £350 million and 20,000 clients.