In 2011 MAB and Countrywide entered into a five year joint venture agreement, which included a put and call option for MAB's 49% shareholding, exercisable any time after five years from the date of commencement.
CPF is an AR of the Group and provides mortgage and protection advice to customers of Countrywide's premium real estate brands, including Hamptons International, John D Wood & Co., Faron Sutaria and UK Sotheby's International Realty.
Completion is anticipated in early H2 2016.
MAB intends to declare a special dividend equivalent to the post-tax sale proceeds shortly after completion. This special dividend will equate to c. 4.25p per ordinary share.
In a statement, MAB said:
"We anticipated that Countrywide may exercise this option and our expected minimum 15% compound annual growth in Adviser numbers allows for the removal of the CPF Advisers from the Group."
Peter Brodnicki, CEO of Mortgage Advice Bureau, said:
“I was delighted to be asked by Countrywide back in 2011 for the group to set up and run a new mortgage broking business in London to service the premium estate agency brands that they had just acquired.
“It was a fantastic opportunity and an exciting challenge to build a 25 adviser business in the middle of a recession, and over the last five years we have really enjoyed working with Countrywide, their estate agency teams, and a great group of advisers.
“This was always going to be a five-year plan, and over the next four months we will be preparing to hand the business over completely to Countrywide. Some exciting times ahead for everybody involved in Capital Private Finance, and we would like to thank you all for your support and wish you continued success in the future.”
