Lloyds to buy farm mortgage specialist
Tuesday 19 January 1993
The AMC was set up by statute in 1928, and has been jointly owned since then by the main clearing banks, including Lloyds, and the Bank of England.
With farmers expressing concern that interest rates will rise when the AMC comes under single ownership, Lloyds said it was a condition of the sale that the organisation would be run as an independent company under its existing name.
The AMC provides competitively priced loans for 12,000 farmers, foresters and horticulturalists. But with just under pounds 1bn out on loan, it has only 9 per cent of the UK agricultural finance market of pounds 12.6bn. The acquisition will more than double Lloyds' existing share of 7 per cent.
Profits in the year to last March were pounds 7.8m. The price Lloyds is paying values the AMC at 60 per cent of net asset value last March of pounds 52m. Finance businesses normally change hands for at least net asset value.
But one shareholder said the AMC was not as cheap as it looked because of uncertainty over the future of the agricultural sector and an erratic profits record over the years. 'It has never been a very good investment for us,' the shareholder said.
- 1 Bill Clinton portrait features Monica Lewinsky reference, artist admits
- 2 Delhi bus rapist blames dead victim for attack because 'girls are responsible for rape'
- 3 PornHub turns masturbation into energy in bid to save the planet
- 4 Have sex with your iPad thanks to the new sex toy no-one asked for
- 5 Average penis size revealed: Scientists attempt to find what is 'normal' to reassure concerned men
Bill Clinton portrait features Monica Lewinsky reference, artist admits
Delhi bus rapist blames dead victim for attack because 'girls are responsible for rape'
The 'sex selfie stick' lets you FaceTime the inside of a vagina
Kanye West gives guest lecture at Oxford University: 'If I, Kanye West, can remove my ego, I think there's hope for everyone'
'This is what Islam tells us to do': A rare glimpse inside a Saudi Arabian prison – where Isis terrorists are showered with perks and privileges
New theory could prove how life began and disprove God
'Jihadi John': CAGE representative storms off Sky News accusing Kay Burley of Islamophobia
This is what it's like to be dead, according to a guy who died for a bit
Ukip would cut billions from Scottish budget to fund English tax cuts
Nearly 100,000 of Britain's poorest children go hungry after parents' benefits are cut
End of the licence fee: BBC to back radical overhaul of how it is funded
iJobs Money & Business
£20000 - £21000 per annum + uncapped commission: SThree: As a graduate you are...
£25000 - £30000 per annum + benefits: Ashdown Group: A global leader operating...
£15000 - £16000 per annum: Recruitment Genius: A Customer Service Advisor is r...
£22000 per annum + pension,bonus,career progression: Ashdown Group: An establi...