Marks & Spencer today announces that it has completed the sale of Marks & Spencer Retail Financial Services Holdings Ltd (M&S Money) to HSBC for a consideration of £762 million. This represents a premium of £224 million over net asset value as at 3 April 2004.
In addition, the Group will retain £60 million of net assets held in Marks & Spencer Insurance.
Marks & Spencer and HSBC have entered into a relationship under which Marks & Spencer will continue to share in the success of the business. Under the terms of the sale, Marks & Spencer will receive fees equating to 50 per cent of the profits of M&S Money, after a notional tax charge and, after, deducting agreed operating and capital costs, plus payments in relation to sales growth.
As a result of this transaction, Laurel Powers-Freeling, Chief Executive, M&S Money, will be stepping down from the Group Board with immediate effect. She will continue to oversee the transition and is expected to leave the company by the end of the financial year.
Stuart Rose, Chief Executive, Marks & Spencer, said: "Laurel has achieved a great deal in developing our financial services business, most significantly the very successful launch of the &more card. We thank her for her valuable contribution to Marks & Spencer over the last three years and wish her well for the future.
"I am looking forward to working with HSBC and jointly developing this business which will continue to operate under the M&S Money brand."
For further information, please contact:
Corporate Press Office:
Sue Sadler 020 8718 8642
Lisa Attenborough 020 8718 6166
Investor Relations:
Amanda Mellor 020 8718 3604
Damian Evans 020 8718 1563
