Victoria Mortgages denies imminent sale

Ramesh Sharma

March 11, 2006

Kevin Hillgren, chief executive officer at Victoria, confirmed the lender will be looking to increase its business over the next two years, before it estimates its value in the marketplace, with regards to being sold.

A number of industry commentators have suggested Victoria was on the verge of being bought by a large banking firm, but Hillgren dampened all speculation, explaining that the company was not currently in a position to tout itself to potential buyers. He said: “ Victoria has no plans to sell, as yet, and it will be about 24 months before Victoria is at a size we think it should be at. At that stage, the decision will have to be made whether to float on the stock exchange, or be part of a trade sale.”

He added he had been in meetings with a number of companies discussing the lender, and said: “There have been a few meetings, but mainly about who we are, and where we see Victoria going. But, of course if someone wants to come in with a massive offer, we would consider it.”

An industry source told Mortgage Introducer that the lender had always set its stall around a short-term business plan, with the ultimate aim of being sold. He said: “Victoria Mortgages has always had a clear exit strategy. Over the past few months there has been speculation about its future, with an American bank supposedly interested in the lender and talking with it.”

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