Elephant Loans & Mortgages set to buy Financial Trade Partnership

Elephant Loans & Mortgages has agreed outline terms to acquire Financial Trade Partnership, which operates the UK’s largest network of secured loan advisers.

Given the relative size of FTP to Elephant, the deal requires the approval of the company’s shareholders at a general meeting of the company.

Once appropriate legal and financial due diligence has been completed by both Elephant and FTP and a conditional share purchase agreement entered into, Elephant will be issuing documents to shareholders who can approve the
transaction.

The transaction is at an early stage and the board has requested that trading in the company’s shares be suspended until publication of the admission document.

In the event that consideration for the acquisition is satisfied by the issuance of shares in Elephant, the transaction may be subject to the approval of independent shareholders and a waiver from the Takeover Panel of the obligation that would otherwise arise on the shareholders of FTP to make a general offer for Elephant.

FTP is a brokerage network which provides a range of services to brokers, including the management of compliance and operational costs, training, and product and sales support.

As announced on 20 March, Elephant’s subsidiary, Elephant Loans (Direct) Limited has become an Appointed Representative of FT Compliance Services Limited, a wholly owned subsidiary of FTP, and a member of the FT Partners network.

The proposed takeover brings benefits to both parties and full information on the terms of the reverse takeover and FTP, as well as the benefits to Elephant shareholders will be provided in the Admission Document.

As has been well documented, the effects of the global “credit crunch” have created severely challenging trading conditions for all market participants.

The board of Elephant expects the company’s losses for the second half of the year to 31 March 2008 to be at a similar level to those reported in the first half.