London Scottish Bank finalised a deal early in August to sell
its invoice financing division to Hitachi Capital UK for
£28.5m.
London Scottish Invoice Finance is the invoice discounting and
factoring subsidiary of LSB. It contributed £2.5 million to the
bank’s balance sheet last year, 12 months in which it was hit by a
£22 million impairment charge and was the first London-listed bank
to be ordered by
the FSA to increase reserves under new Basel II rules.
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Senior management of LSIF, including MD Steve Smith, will
transfer to Hitachi Capital
as part of the disposal.
Smith said of the move: “We have now got the backing of a strong
parent company with resources. This is a new acquisition for
Hitachi and we are looking to take on the banks.”
The sale was announced on June 1, subject to shareholder
approval.
“This led to our best sales month this year, with 14 new deals
and an increase in our book of 2.4 percent for the month, which, if
annualised, would be 28 percent,” Smith added.
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