Britain’s Biggest High Street Lender Completes £120 Million Deal
Britain’s biggest high street lender has completed a £120 million deal to buy digital wallet provider Curve, despite allegations from shareholders over the distribution of the sale proceeds. Curve informed its investors that it had signed a share purchase agreement with Lloyds Banking Group, with an announcement expected as early as next week.
Disappointment Over Sale Price
In a circular to shareholders, Curve said: "We recognize that the value of this transaction falls short of the ambitions we all had for Curve and we share the disappointment that some of you may have with this outcome." Nevertheless, the Board firmly believes that this transaction represents the best course of action available to Curve’s creditors and shareholders as a whole.
Shareholder Concerns
Since talks about a sale to Lloyds emerged in the summer, some early Curve investors have expressed anger over the price and the planned distribution of proceeds. The largest outside shareholder, with a 12% stake, remains "deeply concerned about the conduct of Curve’s management and board during the current sale process." Issues regarding governance and ownership are disputed, and the shareholder reserves all legal rights pending further developments.
Opposition to the Sale
The shareholder does not intend to support the proposed sale and does not believe that it can be implemented without its support. It expects the board and any potential buyers to act responsibly and transparently and to take all necessary steps to protect the interests of shareholders if these obligations are ignored. Efforts to remove the company’s directors were voted out at a shareholder meeting early last month.
Background
The company has raised at least £250 million in funding since its inception. The sale price was disappointing, and the company was likely to run out of cash this year unless a sale to Lloyds was agreed. Lloyds hopes the Curve purchase will give it a head start in building smarter online payment systems as pressure grows on Apple to open up its payments services to rivals. Curve did not respond to a request for comment.
