Sale to free up more than £100m in liquidity for KSF.
Kaupthing Bank's subsidiary, Kaupthing Singer & Friedlander has sold its Insurance Premium Finance business to Close Brothers at a small premium to net asset value.
The sale will free up more than £100m in liquidity for KSF. The Commodity Trade Finance has also effectively been closed and 97% of the initial portfolio, which was approximately £350m, has been run-off.
KSF announced in February 2008 the final step of its UK restructuring following Kaupthing's acquisition of Singer & Friedlander in 2005. KSF announced that it would be exiting its Asset Finance and Commodity Trade Finance businesses and that it had made structural changes within its Banking Division.
The exit from the Asset Finance businesses has been ongoing since the announcement with interest expressed for the whole operation and parts of the operation from a number of potential acquirers.
The disposal process of the Corporate Asset Finance division and Healthcare Finance division is ongoing and Kaupthing expects to give a further update on progress in the coming months.
Ármann Thorvaldsson, CEO of Kaupthing Singer & Friedlander, said: "Our exit from the Commodity Trade Finance and Insurance Premium Finance businesses, in addition to the very successful roll-out of our internet deposit gathering platform Kaupthing Edge, has further strengthened our liquidity position.
"We therefore remain optimistic on the general outlook for the business in the UK."
