Cityscape's UK subsidiary to acquire London-based mortgage originator; Complementary Business Includes $58 Million Loan Portfolio.ELMSFORD, N.Y.--(BUSINESS WIRE)--March 7, 1996--Cityscape Financial Corp. (Nasdaq:CTYS CTYS Chat to You Soon ) today announced that its wholly-owned United Kingdom subsidiary, City Mortgage Corporation Ltd., has signed a definitive agreement to acquire all of the outstanding stock of J&J Securities, Ltd. ("J&J"), a London-based company. J&J specializes in originating non-conforming first and second mortgage loans. As of March 6, 1996, the company had a portfolio of $58 million. Cityscape (company) CityScape - A re-seller of Internet connections to the PIPEX backbone. E-Mail: <sales@cityscape.co.uk>. Address: CityScape Internet Services, 59 Wycliffe Rd., Cambridge, CB1 3JE, England. Telephone: +44 (1223) 566 950. will make a cash payment of 15 million pounds sterling and will issue 274,000 shares of common stock to the present principals of J&J. Based upon current exchange rates and the price of Cityscape stock as of March 6, the transaction is valued at approximately $31 million. The transaction is subject to customary closing conditions; closing is expected to occur within 60 days. Commenting on the proposed acquisition, Cityscape's Chairman and CEO (1) (Chief Executive Officer) The highest individual in command of an organization. Typically the president of the company, the CEO reports to the Chairman of the Board. Rob Grosser, noted, "I am very excited about this transaction, which has important benefits for Cityscape. J&J's operations are extremely complementary to City Mortgage Corporation's business. While City Mortgage is a leading originator of non-conforming mortgages in the UK, the market remains fragmented. In fact, none of J&J's top ten mortgage brokers are among City Mortgage's leading producers. Moreover, J&J's portfolio consists of loans with provisions and rate structures substantially similar to the loans originated by City Mortgage." Mr. Grosser continued, "In addition to acquiring a $58 million loan portfolio, we intend to capitalize on Cap´i`tal`ize on` v. t. 1. To turn (an opportunity) to one's advantage; to take advantage of (a situation); to profit from; as, to capitalize on an opponent's mistakes s>. the long-standing relationships developed by J&J, which has been in the non-conforming mortgage business since 1980. We look forward to working with David Johnson David Johnson may refer to:
Cityscape Financial Corp. is a consumer finance company which, through its wholly-owned subsidiaries, Cityscape Corp. and City Mortgage Corporation Ltd., is engaged in the business of originating, purchasing, selling and servicing home equity mortgage loans, secured primarily by one-to-four family residences, in the United States and the United Kingdom. Cityscape Corp. was founded in 1985 and is headquartered in Elmsford, New York Elmsford is a village in Westchester County, New York, United States. The population was 4,676 at the 2000 census. As a village, it is located in the Town of Greenburgh. The village is named after a large elm tree that once grew in the community. , with regional processing offices in Georgia and Virginia. CONTACT: Robert C. Patent, EVP EVP Executive Vice President EVP EGR (Exhaust Gas Recirculation) Valve Position Sensor EVP Electronic Voice Phenomenon EVP Europäische Volkspartei (Germany) EVP Employee Value Proposition Tim S. Ledwick, CFO See Chief Financial Officer. Cityscape Financial Corp. (914) 592-6677 or Michele Katz/Jeffrey Luth/Jason Langer Press: Paul Steidler/Jackie Day Morgen-Walke Associates (212) 850-5600 |
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