Wednesday, 18 October 2017

Britain's biggest Debt collector Cabot acts with Haste to secure £1bn flotation

Britain's biggest debt collector has lined up the boss of Wonga to steer it through a London flotation expected to value it at £1bn.
Sky News has learnt that Andy Haste, the former RSA Insurance chief executive, is to be unveiled as the new chairman of Cabot Credit Management.
City sources said on Wednesday that Mr Haste, who is also chairman of Wonga, will be named in an announcement expected to be made by Cabot about its intention to float on Friday morning.

The appointment of a heavyweight chairman has allowed Cabot's owners to press ahead with their plan to list the company.

Insiders said that Cabot's owners, the New York-listed speciality finance firm Encore Capital Group and private equity group JC Flowers, would seek to sell part of their stakes in the flotation.

The company is also expected to seek in the region of £150m in new capital from institutional investors, banking sources said.

Cabot's plan to go public comes against a backdrop of growing warnings about the indebtedness of British consumers, and reflects burgeoning opportunities for the business to grow its customer base.

Earlier this week, the head of the City watchdog, warned that many young people were being forced to borrow money to fund essential everyday expenditure.

Goldman Sachs, Jefferies and Morgan Stanley are leading the listing of the debt collector, which owns brands such as Cabot Financial and Wescot.

SKY        News.

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