Platform Black have today announced that their majority shareholder – Sancus BMS Group have increased their shareholding in the firm demonstrating their further commitment to the future of the business in the UK funding market.
The move sees Sancus BMS Group make a further investment in Platform Black through the cash purchase of an additional 10% of Platform Black shares from minority investors, taking its holding from 83.93% to 93.93% at a £3.5m valuation.
In addition to this, Sancus BMS Group, who is wholly owned by GLI Finance Plc, has entered in to an agreement on 28th July 2016 with a consortium of high net worth private investors (“Minority Investor Group”), whereby the Minority Investor Group will lend up to a maximum of £50m through Platform Black Limited and buy 10% of Platform Black Limited at a £3.5m valuation for cash, thus reducing Sancus BMS Group’s holding back down to 83.93%. The Minority Investor Group also has the option to acquire an additional 20% of Platform Black Limited at a £5m valuation in the future.
The move follows recent activity brought about by the appointment of Andy Whelan as CEO of GLI Finance, in December 2015. His objective of simplifying the group’s structure and increasing levels of commercial operating and financial integration resulted in an inter-company transfer of its holdings in Platform Black to the newly formed Sancus BMS Group Limited.
Caroline Langron, Managing Director of Platform Black said; “This a really positive news and demonstrates the continued robust support from both GLI Finance and Sancus BMS Group over recent months for Platform Black which is now a key part of their portfolio. The injection of £50m into the business by the Minority Investor Group enables us to boost further our capability to fund the demand we are seeing from UK businesses looking for flexible sources of finance. The change in shareholding will only serve to strengthen the business as we seek further growth. Being part of a larger group brings many benefits to our clients as we will be able to draw on the resources of our shareholders and the wider Sancus BMS Group companies to ensure that we continue to satisfy our clients financing requirements.
Platform Black have seen a period of positive growth with in excess of £132m of funding provided to businesses seeking flexible and competitive finance for their businesses. The business has over the last 2 years changed its leadership and invested in building robust risk management skill set and processes in to the business which has delivered a zero default rate on their transactions over the last 16 months.
Sancus BMS see the change in shareholding as a means of bolstering Platform Black through the provision of stronger shareholder support, offering and giving it greater reach. According to Sancus BMS Group Chairman, Andy Whelan, “Platform Black, to be renamed Sancus Finance Limited at year end, is one of our priority platforms, and this transaction will bring substantial liquidity to the platform, enabling scale at pace. We look forward to working with the Minority Investor Group.”
With both financial resources and the wider offerings within the Sancus BMS Group at their disposal, Platform Black will continue to be a leading player in the rapidly growing alternative finance sector”.