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Precise parent given £400m to £500m price tag

Sarah Davidson

January 25, 2016

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Charter Court Bank, the bank that owns Precise Mortgages and Exact, is hoping to achieve between £400m and £500m from a potential sale, The Times reports.

It is understood the business hopes to achieve £400m to £500m on the grounds that it is fast growing and may make £40m profit this year.

If it is measured on the basis of a similar multiple to earnings as other challengers such as OneSavings, and if a premium for acquisition is included, the price could be in the range hoped for.

It follows the news last week that the bank was looking for a buyer after appointing Deloitte last Summer as advisers.

The business has been 75% owned by US-based private equity firm Elliott Associates since 2008 but reports suggest the firm is now looking to exit at the right price.

Last year Precise lent £1.61bn on residential, buy-to-let, bridging and second charge loans, more than doubling its origination from the previous year.

At launch the lender was funded primarily through a series of warehousing lines offered by Elliott but following banking permissions being granted to Chartered Savings Bank, the lender has raised over £1bn in retail deposits since January 2015.

Just two days ago reports suggested that MetroBank was looking to float with a price tag of £2bn while Clydesdale and Yorkshire Banks’ owner National Australia Bank confirmed last week it plans to price its own IPO of the two lenders in the range of £1.54bn to £2.07bn.

In April last year Shawbrook Bank fetched £725m when it floated while Aldermore was valued at £660m in March 2015.


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