Kent Reliance Building Society has signed a conditional transfer agreement to move its assets to a new company called OneSavings plc as part of its restructuring deal with private equity firm JC Flowers.
JC Flowers and Kent Reliance have been in talks since last October to set up a new venture that will act as platform for mutual acquisitions.
In August Kent Reliance announced its restructure proposals to transfer its business, assets and liabilities to a new banking subsidiary. JC Flowers will put up £50m in capital into the bank once the assets have been transferred.
Kent Reliance has announced today that it has signed a conditional transfer agreement to move its assets into the new company called OneSavings plc.
Chief executive Mike Lazenby (pictured) says: “We are forming a new company called OneSavings plc, which is intended to become a bank subject to approval by the FSA and our members. It will effectively be the trading entity of the new venture.
“Although we will still be using the Kent Reliance brand in Kent the main company is going to be OneSavings. If we agree deals with other building societies this vehicle allows them to keep their local franchise but as part of this one big entity.”
The transfer will become effective on February 1, 2011 subject to member approval at a special general meeting to be held on November 19.
The transfer is also subject to OneSavings plc being granted regulatory permissions and confirmation of the transfer by the FSA.