The proprietor of Argos’s retailer card division is on the point of a cope with one of many world’s largest personal fairness buyers that may worth it at about £1.7bn.
Metropolis sources stated KKR was prone to purchase NewDay’s current loan-book in addition to shopping for a stake in its lending platform alongside current shareholders Cinven and CVC Capital Companions.
An settlement could possibly be introduced as early as Wednesday, in response to insiders.
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NewDay has shopper credit score hyperlinks with a few of Britain’s main retailers, together with John Lewis Partnership and AO, the web electrical items web site
It owns the Aqua, Fluid and Marbles credit score manufacturers, in addition to Bip – the UK’s first digital-only credit score “card”.
The corporate’s house owners have been exploring an outright sale or a extra structured transaction for months, drawing curiosity from events akin to Pimco, the enormous bond fund supervisor.
NewDay took possession of Argos’s retailer card enterprise final 12 months in a £720m cope with J Sainsbury, the grocery store big.
It’s certainly one of Britain’s largest privately held suppliers of shopper credit score providers, with about 4 million clients.
Final 12 months, it reported £213m of underlying pre-tax revenue, with new buyer acquisitions up 36%.
It additionally launched a know-how and lending partnership with Lloyds Banking Group, and launched the pilot of a know-how partnership with Debenhams Group within the last quarter of final 12 months.
The corporate is chaired by Sir Mike Rake, the previous BT Group and Worldpay chairman.
Its chief government is John Hourican, the previous Financial institution of Cyprus and Royal Financial institution of Scotland government.
NewDay, KKR and CVC declined to remark.
