Max Barney Investments Ltd agreed to acquire Milton Homes Limited from City of London Group plc (AIM:CIN) for £9.3 million on September 6, 2021. The acquisition is funded by, (i) the acquisition and cancellation of an intercompany loan of £7.8 million between the City of London Group plc (AIM:CIN) and Milton Homes Limited by HPB Pension Trust, an entity associated with Max Barney Investments Ltd, which will occur immediately, (ii) a payment of £1.2 million by Milton Homes Limited to the City of London Group plc (AIM:CIN) utilizing excess cash on its balance sheet which will occur immediately and (iii) a payment of £0.25m by MB to the Company which will occur on completion. The deal is conditional on receiving regulatory approval.

The net proceeds from the sale are intended to contribute to the regulatory capital of City of London Group plc subsidiary Recognise Bank Limited, and in line with the approach to develop a new UK SME bank. James Britton and Rishi Shah of Peel Hunt LLP acted as a legal advisors to City of London Group plc (AIM:CIN). As of February 25, 2022, the transaction has been approved by Financial Conduct Authority.