Barclays to Buy Kensington Mortgage Co., Portfolio for Around $2.8 Billion
June 24 2022 - 2:49AM
Dow Jones News
By Joe Hoppe
Barclays PLC said Friday that it has agreed to acquire
Kensington Mortgage Co. and a related portfolio of U.K. mortgages
for around 2.3 billion pounds ($2.82 billion).
The London-based lender said it will acquire the specialist
mortgage lender from companies controlled by funds managed by
Blackstone Tactical Opportunities Advisors LLC., and funds
affiliated with Sixth Street Partners LLC.
The transaction is subject to regulatory approval and is
expected to complete late in the fourth quarter of the year or
early in the first quarter of 2023.
The consideration payable is expected to be around GBP2.3
billion, assuming the purchase completes in December and the KMC
mortgage portfolio comprises around GBP2.0 billion. The portfolio
totaled GBP1.2 billion as of May 31.
The transaction will be financed from existing resources and is
estimated to reduce Barclay's common equity Tier 1 ratio--a key
measure of balance-sheet strength--by around 12 basis points.
KMC generated a pretax profit of GBP500,000 in fiscal 2021,
along with GBP65.9 million of income. Barclays said the acquisition
will enable it to broaden its product offering and capabilities in
the U.K. mortgage market, extend its customer base and grow
mortgage originations.
Write to Joe Hoppe at joseph.hoppe@wsj.com
(END) Dow Jones Newswires
June 24, 2022 02:34 ET (06:34 GMT)
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