Company filings suggest Metro Bank’s RateSetter acquisition is moving closer
RateSetter has filed a new memorandum and articles of association that allow for its shares in RateSetter Australia to be distributed, Companies House documents show.
It is the latest stage in the acquisition of the UK peer-to-peer lender by Metro Bank.
RateSetter UK has a 14 per cent stake in RateSetter Australia, worth £14.4m, which isn’t included in the Metro Bank deal.
The Companies House documents allow for these funds to be distributed to shareholders of RateSetter UK.
Metro Bank unveiled plans to acquire RateSetter earlier this month for an initial consideration of £2.5m, with up to £9.5m to be paid out after the completion of the deal.
Up to £0.5m is set to be payable 12 months after the completion of the acquisition, and a further £9m will be paid on the third anniversary of the transaction date, subject to key performance criteria.
Metro Bank will solely fund RateSetter’s consumer loans but the platform will remain open for existing peer-to-peer investors.
The companies said at the time of the deal that RateSetter’s holding in RateSetter Australia, which has since rebranded as Plenti, will be distributed on a pro-rata basis to the “existing RateSetter shareholders by means of a reduction in capital at or around completion of Metro Bank’s acquisition of RateSetter.”
RateSetter UK declined to comment.
Read more: Why is Metro Bank eyeing RateSetter?
