EIS separates from Erinaceous Group - New and stable ownership

EIS Insurance Solutions  - Announcement  14th April 2008

The three major UK banks to Erinaceous Group plc (ERG) have today agreed to acquire EIS through a corporate vehicle owned by them. This sale is subject to the consent of the FSA and an overseas regulator. Pending completion, which is expected in a few days, EIS is ring-fenced from the rest of ERG and continues to operate as normal outside of any insolvency process affecting the rest of ERG.

The impact of this transaction is to separate EIS completely from ERG and from the issues affecting ERG. This is very good news for a;; our customers, suppliers and staff.

The discussions regarding the possible disposal of EIS, which have been underway for some while, are continuing between the Banks corporate vehicle and possible purchasers. It is anticipated that it will become clear in the near future whether a transaction will be concluded.

Over recent months EIS has, thanks to the strong support of clients and loyality and commitment of its staff, been able to consolidate its business base and is trading well with positive casj flow. EIS has strong brands and leading market positions and is substantially free of debt and of charges or guarantees to support debt .

The Board of EIS believe that today's development represents a vital step in enabling the business to continue to develop and grow as one of the UK's leading insurance brokers focussed on the property and letting market.

Over the next few days, the senior management of EIS will be contacting customers and suppliers and talking to our staff to give them additional background and answer any questions.

Ends... John Boyle Managing Director of HomeLet and Letsure that are owned by EIS said on the 15th April " I am pleased to attach an announcement which was released yesterday, which details a change in the ownership of EIS, which in turn owns HomeLet and Letsure .

This is good news for all of us, most especially our customers and our staff. It means that we can trade into the future free from all of the noise surrounding our former parent company and the knock on effects that has had."

See also HomeLet (Group) Press Information:

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