Peach Holdings Agrees to 404 million Sterling Merger with DLJ Merchant Banking

Peach Holdings Inc, the parent company of consumer finance company Peachtree Settlement Funding said it has recommended an offer from Orchard Acquisition Company, an affiliate of DLJ Merchant Banking Partners (‘DLJMB’), at 3.85 stg cash per share and valuing the whole of Peach Holdings at 404 mln stg.

Orchard Acquisition Company is a newly formed company to be owned by an investor group that is led by DLJMB and including the senior management of Peach Holdings, Credit Suisse, LLR Equity Partners and Greenhill Capital Partners.

The merger agreement values Peach Holdings at 404 mln stg when taken together with an expected cash dividend of around 3.5 pence per share.

Peach Holdings also announced today that the securitization for its life settlements, which it previously indicated was targeted for completion in the fourth quarter of 2006 may occur in 2007.

Source: www.afxnews.com