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May 1, 2008updated 12 Apr 2017 4:44pm

Acquisition boosts Hitachi’s discounting business

Acquisition boosts Hitachis discounting business Hitachi Capital UK has completed the acquisition of London Scottish Invoice Finance (LSIF) from London Scottish Bank (LSB) for approximately £28.5m.

By Brian Rogerson

Hitachi Capital UK has completed the acquisition of London Scottish Invoice Finance (LSIF) from London Scottish Bank (LSB) for approximately £28.5m.

LSIF, the invoice discounting and factoring subsidiary of LSB, caters for the small to medium-sized enterprise sector operating from offices in Telford and Goring near Reading.   At its year end October 31 2007 LSIF had total assets of £27.2m, net assets of £3.4m and contributed some £2.5m of profit to LSB’s overall loss before taxation.   The management of LSIF will transfer to Hitachi Capital as part of the acquisition, including Steve Smith, managing director and regional sales directors of LSIF, Robert Crumbley, Andrew Norton and David Bond.   The disposal is part of LSB’s decision to refocus on its debt purchase and debt collection business, and to reduce the capital employed in its lending divisions. The proceeds from the sale will be used to reduce LSB’s net borrowings.   Hitachi Capital will pay consideration of around £9m in cash in respect of the share capital of LSIF. This represents a premium of £5.3m to the expected net assets at completion of £3.7m. In addition, Hitachi Capital will pay LSB around £19.5m for various intra-group loans between LSB and LSIF.

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