ABN Amro will acquire approximately 40% of Bluestone, with a further 10% being purchased by UK based fund manager Cambridge Place Investment Management, and Bluestone’s chairman, David Clarke. Barclays Bank and Crescent Capital Partners intend to retain their minority stakes in the business. The shares being purchased are made up of a combination of new issuance and shares sold by a syndicate of Bluestone’s shareholders, including RMB Ventures, interests associated with Bluestone’s founder, Alistair Jeffery, together with staff and management.
The transaction marks an outright exit for venture capital investor, RMB Ventures. RMB invested in the lender between 2001 and 2002, and currently hold approximately 20% of the company’s shares.
As part of the transaction, Jeffery reduces his stake from 40% to 25%, and he has extended his term as chief executive of Bluestone for a further three years. Over this time, Bluestone intends to continue its push into new specialist segments including the rapidly emerging equity release market, and other residential and commercial markets.
"The transaction marks the culmination of several months of hard work by Bluestone’s Board, management, staff and advisers. It represents both a liquidity event for existing shareholders and the start of Bluestone’s next phase of growth,", Jeffery said.
"One feature of Bluestone’s expansion has been a progressive employee share option programme which has seen staff and management build a shareholding of approximately 8% of the company since its launch in 2000. I’m also particularly pleased that those who have put in a lot of the hard work are now able to realise the fruits of their labour," he said. Bluestone commenced a structured sale process following enquiry from a number of potential financial investors in early 2005. The transaction was initiated by ‘straw-polling’ existing shareholders to gauge the potential size of shareholding that could be created from selling interest, reviewing alternative liquidity strategies including an IPO, and then evaluating potential investors in what turned out to be the sale of a major minority block. Corporate advisory house Caliburn advised the company on the process, which is subject to shareholder approval.
ABN Amro owns sharebrkoking firm ABN Amro Craigs in New Zealand and recently bought a stake in specialist funds management firm Absolute Capital.
