City of London Group to sell home reversion plans provider Milton Homes

City of London Group said that it has signed a sale and purchase agreement to sell home reversion plans provider Milton Homes Limited and its fully-owned subsidiaries to Max Barney Investments for £9.3 million.

For the financial year ended 31 March 2020, Milton Homes Limited made profit before tax of (£2.6) million. The company had total assets of £69.3 million and £2 million in net assets, as of the date.

The UK-based investment company plans to use the net proceeds from the sale to contribute to the regulatory capital of Recognise Bank Limited, its subsidiary.

The sale is said to be in line with City of London Group’s approach to develop a new SME bank in the UK.

The deal is subject to regulatory approval from the UK Financial Conduct Authority of the change in control of Milton Homes Limited and of its lender.