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Cattles raises £82m for acquisition

Katherine Griffiths
Thursday 17 October 2002 19:00 EDT
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Cattles, a company which specialises in door-to-door loans, yesterday announced it had raised £82.8m through a share placing to fund its break into the quality end of the consumer finance market.

It paid £56.5m for a portfolio of car loans from Associates Capital, part of the US bank Citigroup, adding 13,000 customers. Sean Mahon, Cattles' chief executive, said the customers were "near prime", including people who have bank accounts but are not always allowed to take out additional loans or credit cards with their banks.

Cattles would not try to sell extra loans at this point to these customers in case they took on too much debt. Mr Mahon said he hoped the group would "build up a relationship" with these borrowers, so that they might take out loans in the future with the company.

It has also bought Dial4aloan, a broker, for £15.5m. Mr Mahon said Dial4aloan would introduce expertise in attracting business through television and newspaper advertising.

Cattles funded both acquisitions by selling 27.6 million new shares at 300p via an underwritten placing through HSBC.

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