Agreement on sale of an organised part of the enterprise of mFinanse
The Management Board of mBank, with their registered office in Warsaw, announces that on 27 November 2017 the Bank and the Bank’s subsidiary mFinanse concluded a conditional agreement under which the Bank is obliged to sell and transfer 100% shares in Latona to Phoebe IVS and mFinanse is obliged to thereupon sell and transfer a part of mFinanse to Latona. At the moment of sale and transfer Latona will be owned by Phoebe IVS. mFinanse is a separate business activity providing insurance agency services.
Phoebe IVS will finance the transactions with funding provided by Purple Star Receivables Funding DAC, with its registered office in Ireland, with support from a syndicate of institutional investors. Purple Star Receivables Funding DAC will act as a guarantor and is a party to the agreement (“Guarantor 1”). The other guarantor is Indigo Agencies Holdings Limited (“Guarantor 2”). The Investor and Guarantor 2 are affiliates of the independent Anglo-Danish Indigo Group which includes Indigo Underwriters, focused on specialist (re)insurance underwriting and agency activities, licenced in the United Kingdom.
The sale transactions are expected to be closed in the first quarter of 2018, upon fulfilment of the standard type of conditions in this type of agreement.
The expected maximal value of remuneration on account of the agreement is approx. PLN 520 million, out of which the remuneration in the amount of approx. PLN 465 million will be recognised over a period of 15 years. The Agreement also includes the standard contractual penalties.