Member Article

CPP shareholders back equity-raising plans

SHAREHOLDERS of York-based credit card insurer CPP have backed £20 million equity raising plans as the firm announces the appointment of a new chairman.

Taking over the role with immediate effect from outgoing chairman Duncan McIntryre is Eric Anstree, a former chief executive of the Institute of Chartered Accountants in England and Wales (ICAEW).

His arrival comes as shareholders vote in favour of previously announced plans to move CPP’s shares to AIM, raise £20 million through a placing and reorganise the company’s share capital.

The moves are part of a rebuilding strategy by the Holgate-based firm which is recovering after being fined £10.5 million by the Financial Conduct Authority in 2012 and paying out £65.8 million in compensation to customers for miss-selling insurance.

CPP Chief executive Brent Escott said: “Today’s positive outcome in favour of our proposals is excellent news for CPP and completes another critical step to secure our future.

“This is very positive for our customers, our people and allows the Company to continue on its journey and invest in future growth.

“The Board would like to thank new and existing shareholders for their support and in particular our Business Partners for their support and on-going commitment and also Barclays Bank PLC as on-going senior lender.”

The £20 million funding, which will equate to £17.9 million after expenses, will come from the placing of nearly 667 million shares at 3p per share.

Upon completion of the placing, funds managed by Phoenix Asset Management Partners will hold approximately 40 per cent of CPP’s share capital following AIM Admission.

This was posted in Bdaily's Members' News section by Robert Beaumont .