FIMBank offers £31 million for London Forfaiting Company

First International Merchant Bank plc last week announced that it has made a cash offer to WestLB Panmure Limited to buy the London Forfaiting Company plc, a company listed on the London Stock Exchange. LFC made a simultaneous announcement on the LSE.

FIMBank is offering 29.5 pence per LFC share, valuing LFC at circa £31 million, through a wholly owned subsidiary, FIMBank (UK) Limited. LFC specialises in offering forfaiting (i.e., the purchase and sale of trade-related receivables on a non-recourse basis) and other trade-related finance products.

The acquisition is being made to benefit from LFC's brand name, network and experience in this speciality field.

The offer will be financed by the combination of a short-term bridging loan and FIMBank's own resources. Following completion of the acquisition of LFC, FIMBank intends, subject to the fulfilment of the relevant English law provisions, to use LFC's cash resources to repay the bridging loan. Details of the offer are to be posted to LFC shareholders by not later than August 19 and the offer remains open for acceptance for at least 21 days from the posting of the offer document.

The offer is subject to a number of terms and conditions, including regulatory approval by the Malta Financial Services Authority, confirmation of the findings recorded in due diligence reports on LFC, and a requirement that valid acceptances are received in respect of not less than 90% in nominal value of the LFC shares to which the offer relates.

Once the offer is accepted, FIMBank will seek to delist LFC from the LSE. LFC will continue to offer forfaiting services under its world-renowned brand name through its global network as the forfaiting/trading arm of FIMBank plc.

"Market diversification, global presence and the introduction of forfaiting/trading capabilities required to complete the entire range of trade finance services are already part of FIMBank plc's strategic plan," FIMBank said in a statement. "However, the acquisition of LFC will not only enable the speedy fulfilment of this strategy, but also augment its success since LFC is an undisputed market leader in the forfaiting business."

Last April, FIMBank announced that Margrith Lütschg-Emmenegger had taken up a position as executive vice-president after 12 years as managing director and global head of forfaiting at WestLB in London. Her mandate is to "try to grow the bank internationally - maintain and develop further the already excellent reputation established".

Further information on LFC can be found on their Website: www.londonforfaiting.com.

FIMBank plc will be holding an information presentation on the offer for its shareholders at the Malta Stock Exchange tomorrow at 11 a.m.