TPG Buys Stake of British Mortgage Company

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It's not just the Lone Star Funds going long mortgage companies. This morning Bradford & Bingley announced plans to raise 400 million pounds by selling a stake to buyout firm Texas Pacific Group. It's part of the now familiar dance for finance companies, where they reveal craptacular earnings and attempt to soften the blow by revealing they are shoring up their balance sheets with an injection of new capital. So yeah, B&B also revealed that profits halved in the first four months of the year.
B&B had planned to sell a stake at around 82 pence per share. TPG is paying just 55 pence, indicating that investment appetite for the UK largest buy-to-rent mortgage company is still scarce. The deal is mightily dilutive for existing shares, which were down 23 percent this morning.

B&B sells 23 pct stake to TPG, redraws rights issue
[Thompson Financial via Forbes]

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