BBC South East Today ran a story on the Kent Reliance takeover by JC Flowers today and did a short interview with me. Unfortunately they didn't use much of the material we recorded but hopefully the piece they showed will keep the issue in the media.
There is a press conference by KRBS tomorrow (Tuesday) in Rochester so more news may be forthcoming about the details in the Transfer document and why they have not given out the full facts in the summary of the proposals.
Showing posts with label Kent Reliance Building Society news. Show all posts
Showing posts with label Kent Reliance Building Society news. Show all posts
Monday, 25 October 2010
Kent Reliance Transfer to One Bank - JC Flowers Private Equity Deal
Some rather interesting information has come to light from web sources regarding this deal by Kent Reliance.
One of JC Flowers reported other targets has said:
“Unlike Kent Reliance, we are well capitalized and a financially strong business, therefore we have no reason to join JC Flowers as part of a supermutual.”
Another site says
"The deal is likely to prove controversial, given founder Chris Flowers's reputation as a tough deal maker with no previous interest in mutuality."
One of JC Flowers reported other targets has said:
“Unlike Kent Reliance, we are well capitalized and a financially strong business, therefore we have no reason to join JC Flowers as part of a supermutual.”
Another site says
"The deal is likely to prove controversial, given founder Chris Flowers's reputation as a tough deal maker with no previous interest in mutuality."
Sunday, 24 October 2010
Kent Reliance Takeover (Kent Reliance Building Society) KRBS Takeover Why No Windfall
I hope a few more people realise the significance of what is being voted for. I've gone through the main document and there are some areas that have been very much glossed over in their summary. In addition the following was in The Observer newspaper on Sunday 24th October which presumably is based on the KRBS vehicle doing the bidding.
American private equity group JC Flowers is lining up bids for at least four UK building societies as part of an audacious plan to create a "supermutual" that could be partially floated on the London stock market in five years. West Bromwich, Skipton, Norwich & Peterborough and Principality are in his sights; together, they have more than 1.7 million members, the Observer reports.
(p61) The board's view is that further preference shares will be issued to JCF at the time of investment as a result of writedowns in the commercial portfolio.
So the numbers given for shares owned by both companies are meaningless if further shares are being issued at the same time.
(p63) KRPS will hold 59.9% and JCF 40.1%, The boards view is that significant adjustment is likely to be needed at the time of investment but is not LIKELY to increase JCF holding to more than 75%.
So they expect that JCF could own 75% of KRPS at the time of transaction!! How on earth can they be proposing a transaction that they already know (expect/anticipate) will be exceeeded or changed as soon as it happens? Surely the transaction should include all relevant information up front rather than buried in the details.
Changing from KRPS owning 60% to JCF owning 75% is more than a little change in circumstances especially when it happens IMMEDIATELY not at some unspecified point in the future!
At this point JCF can appoint the majority of directors and control the company! So within a few months, KRPS will have no control over the assets and bank that they created. Some deal for the Private Equity company!! I don't blame them, they are only doing the best by their shareholders and investors, but the management of KRBS are being seriously remiss with hiding these details.
In my view these are significant points and the board are being extremely secretive, one could even say deceptive, by not publicising these as they relate directly to the situation at the time of the transfer.
American private equity group JC Flowers is lining up bids for at least four UK building societies as part of an audacious plan to create a "supermutual" that could be partially floated on the London stock market in five years. West Bromwich, Skipton, Norwich & Peterborough and Principality are in his sights; together, they have more than 1.7 million members, the Observer reports.
(p61) The board's view is that further preference shares will be issued to JCF at the time of investment as a result of writedowns in the commercial portfolio.
So the numbers given for shares owned by both companies are meaningless if further shares are being issued at the same time.
(p63) KRPS will hold 59.9% and JCF 40.1%, The boards view is that significant adjustment is likely to be needed at the time of investment but is not LIKELY to increase JCF holding to more than 75%.
So they expect that JCF could own 75% of KRPS at the time of transaction!! How on earth can they be proposing a transaction that they already know (expect/anticipate) will be exceeeded or changed as soon as it happens? Surely the transaction should include all relevant information up front rather than buried in the details.
Changing from KRPS owning 60% to JCF owning 75% is more than a little change in circumstances especially when it happens IMMEDIATELY not at some unspecified point in the future!
At this point JCF can appoint the majority of directors and control the company! So within a few months, KRPS will have no control over the assets and bank that they created. Some deal for the Private Equity company!! I don't blame them, they are only doing the best by their shareholders and investors, but the management of KRBS are being seriously remiss with hiding these details.
In my view these are significant points and the board are being extremely secretive, one could even say deceptive, by not publicising these as they relate directly to the situation at the time of the transfer.
Wednesday, 14 July 2010
Kent Reliance Takeover (Kent Reliance Building Society) KRBS Gillingham FC Sponsor
UPDATE: 23 October 2010, the proposals for the transfer of Kent Reliance KRBS to the new KRPS have now been published. Click here to read why we will be voting against the proposals.
http://www.rainham-history.co.uk/html/KRBS-Kent-Reliance-Building-Society-takeover.html
It has been reported that the Kent Reliance Building Society, KRBS, sponsor of the Gills and Priestfields stadium, is in takeover talks with the US company JC Flowers. It is suggested that JC Flowers will invest £50million for a 49% stake in the business but that as this is not a full takeover it will not generate windfall payments to members.
http://www.bbc.co.uk/news/10594824
In its stock exchange announcement, the building society said the proposed deal with Flowers would "create a new corporate structure for the Kent Reliance business."
This follows the controversial policies pursued by Chief Exec Mike Lazenby involving outsourcing admin processing to India and closing almost all the Kent Reliance branches.
The Daily Telegraph reports "As the boss of a mutual, , chief executive of Kent Reliance, is charged with running the company entirely for the benefit of its customers, with no external shareholders. Yet together they have devised the first private equity investment in a British mutual lender. The deal is being watched across the City and the regions since it could trigger a transformative impact on reform of the building society and banking sectors. "
One commentator said: "Flowers has been lucky with Lazenby who is not the standard mutual boss. He might find the others harder to convince."
The official announcement by KRBS says:
Kent Reliance Building Society today announces that it is in talks with J.C. Flowers & Co. to create a new corporate structure for the Kent Reliance business. If the new structure proceeds, it would allow for substantial new capital investment to support the business and would provide a means for the Society’s members to remain members of a mutual organisation.
http://www.rainham-history.co.uk/html/KRBS-Kent-Reliance-Building-Society-takeover.html
It has been reported that the Kent Reliance Building Society, KRBS, sponsor of the Gills and Priestfields stadium, is in takeover talks with the US company JC Flowers. It is suggested that JC Flowers will invest £50million for a 49% stake in the business but that as this is not a full takeover it will not generate windfall payments to members.
http://www.bbc.co.uk/news/10594824
In its stock exchange announcement, the building society said the proposed deal with Flowers would "create a new corporate structure for the Kent Reliance business."
This follows the controversial policies pursued by Chief Exec Mike Lazenby involving outsourcing admin processing to India and closing almost all the Kent Reliance branches.
The Daily Telegraph reports "As the boss of a mutual, , chief executive of Kent Reliance, is charged with running the company entirely for the benefit of its customers, with no external shareholders. Yet together they have devised the first private equity investment in a British mutual lender. The deal is being watched across the City and the regions since it could trigger a transformative impact on reform of the building society and banking sectors. "
One commentator said: "Flowers has been lucky with Lazenby who is not the standard mutual boss. He might find the others harder to convince."
The official announcement by KRBS says:
Kent Reliance Building Society today announces that it is in talks with J.C. Flowers & Co. to create a new corporate structure for the Kent Reliance business. If the new structure proceeds, it would allow for substantial new capital investment to support the business and would provide a means for the Society’s members to remain members of a mutual organisation.
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