Bidders for the parent group of Exact and Precise Mortgages are calling for a ‘Brexit clause’ in the takeover deal to protect them from housing market shock, according to Sky News.
Some suitors for Charter Court Financial Services are asking for a material adverse change clause in any acquisition contract.
This would give bidders a get-out clause in case a Brexit vote on 23 June has a knock-on impact on the UK property market.
Bidders are submitting final bids this week, which are expected to be around £400m.
BC Partners, General Atlantic Partners, a bidding group of Warburg Pincus and Centerbridge, and Varde Partners are reported to be interested in Charter Court.
Deloitte is running the auction.
A sale is not certain, however, and Precise’s main shareholder and funder, Elliott Associates, may decide to hold onto the specialist lender. It has been an investor since 2008.
Precise’s directors are understood to be planning to float the lender on the stock market within the next few years regardless of whether it is sold or not.