LONDON (ShareCast) - (Sharecast News) - Alternative finance sector investor GLI Finance announced on Tuesday that BMS Finance Ireland - a company in which GLI holds a 30.3% interest - has entered into an agreement with BPC Ireland Lending Designated Activity Company (BPC), a fund managed by Beach Point Capital Ireland, to sell the entirety of its loan assets at book value.
The London-listed firm said that, following the sale of the loan assets, BMS Ireland would be wound up with cash distributed to investors.

For the year ended 31 December, BMS Ireland had gross assets of €25.4m.

Pursuant to the transaction, GLI said it was expecting to receive a cash consideration of around £7m, which would include £0.28m payable to BMS Finance AB - a wholly owned subsidiary of GLI, which would cease to be the investment adviser to BMS Ireland upon completion of the transaction.

The transaction remained subject to, among other things, shareholder approval of BMS Ireland, and was expected to close on or before 1 August.

"The net proceeds of the transaction will be redeployed for general investment purposes including the launch of Sancus BMS' property backed lending business in Ireland which is due to commence activities in August 2018," GLI's board said in its statement.

"The company believes that this business should generate a higher return on capital compared to the historic working capital lending business."

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