Proven sells AMCL loan portfolio to Access Financial Services
Proven Investments Limited has sold the loan portfolio of its hire purchase subsidiary, Asset Management Company Limited, to Access Financial Services for $500 million, a move aimed at consolidating the operations of both companies, says Proven's chief executive officer, Chris Williams.
The transaction took effect on March 1. It follows Proven Investment's acquisition of 49 per cent interest in Access Financial in late 2014.
AMCL offers consumer and business financing through its through its eZee as 123 brand. Access is also a microfinancier, with a loan portfolio ahead of the current transaction of $1.2 billion.
"We are selling it because we are now majority shareholders of Access, so we are just consolidating the operations into one entity," Williams told Wednesday Business.
For details on the transactions, Williams referred Wednesday Business to Access' CEO, Marcus James, who could not be reached for comment.
The deal will prevent duplication of operating expenses, Williams said.
"It just makes good business sense to sell the loan portfolio in one business into the other business so that we don't duplicate operating expenses," he said, adding that the portfolio was sold for its exact value.
In December, Proven Investments acquired more than 135.24 million or 49.27 per cent of Access shares from Mayberry Investments Limited at $9 per share.