Transfer of Kent Reliance to OneSavings Plc
The transfer, which is expected to become effective in February 2011, will be followed by an immediate capital injection into OneSavings Plc of £50m by a fund managed by JC Flowers & Co, to strengthen the capital base of the new enterprise and to support future growth.
At the society’s Special General Meeting on Friday 19 November, 75.8% of eligible shareholding members voted in favour of the proposal. This was more than the 75% majority required, and 80.15% of borrowing members supported the proposal, more than the 50% majority required.
The transfer will be effected through a conditional transfer agreement, signed on 12 October 2010, between the society, OneSavings Plc and Kent Reliance Provident Society Limited (KRPS) under section 97 of the Building Societies Act 1986 (as amended).
The society will now apply to the FSA for the transfer to be confirmed. This transfer is part of wider proposals for a new structure forsSociety’s business and will allow for substantial capital investment to support the business and enable future growth.
Under this new structure, members of the society will become members of KRPS, a new industrial and provident society, which is a type of mutual organisation. They will cease to be members of the society (which will cease to exist as a legal entity when the transfer takes effect).
Malcolm McCaig, chairman of KRBS, said: “The board of KRBS is delighted that members have voted to approve this transfer. Our joint venture with J.C. Flowers will mark the beginning of an important new chapter in the history of the society and will give us a strengthened capital base.”