Kaupthing Bank

On 5 August 2008, our client, Kaupthing Bank, completed the sale of its insurance Premium Finance business ("PF") to Close Brothers Group plc. The transaction was completed at a small premium to net asset value with the existing PF receivables book of c.£100m being refinanced as part of the transaction.

Kaupthing acquired Singer & Friedlander in 2005 and announced in February this year that it would be exiting its Asset Finance businesses, comprising businesses in corporate asset finance, healthcare finance and premium finance. Canaccord Genuity was appointed in March to assist Kaupthing following a competitive pitch process. The sale of PF is the first transaction in the exit of the Asset Finance businesses.

PF is a specialist finance business which lends to both individuals and companies to finance their general insurance premia. Close Brothers is one of the two market leaders in this sector through its subsidiary, Close Premium Finance ("CPF") . It is expected that PF will be integrated into Close Brothers' existing operations following the transaction.

Canaccord Genuity acted as sole financial advisor to Kaupthing Bank.