Investec might be planning to sell Kensington
Investec, a leading lender and asset manager from South Africa, has said that it is planning to sell its UK-based mortgage business Kensington.
The company is aiming to sell its underperforming assets and boost share values.Investec had earlier said that it is planning to sell some of its operations in Australia. The company said that it has already received expression of interest for the UK unit but did not announce the name of the company.
Investec has appointedcorporate finance firm Fenchurch Advisory for the process to sell the unit but pointed out that it is possible that any sale will not take place.Investec had acquired Kensingtonin a 283 million pound or $461 million deal in 2007.Kensington focuses on lending to home buyers with a poor credit history. The global financial crisis affected the British market where Kensington had many assets.
Kensington has changed its focus to safer "prime" lending but its business has been affected due to lower property prices in Ireland.The parent company has to face huge losses due to the Irish operations.