Kent Reliance members approve JC Flowers deal

Three-quarters of Kent Reliance Building Society members have voted in favour of its deal with US private equity firm JC Flowers, which will see the mutual become a bank.

At the special general meeting held on 19 November in Tonbridge, Kent, 75.80% of eligible shareholding members voted in favour of the proposal, more than the 75% majority required.

In addition, 80.15% of borrowing members supported the proposal, which was well above the 50% majority required.

The deal will see Kent Reliance Building Society transfer all its business, assets and liabilities to a new bank called OneSavings Plc in February next year. This will operate under a parent industrial and provident society.

The transfer will be immediately followed by a £50m cash injection from JC Flowers in order to fund the new bank's growth and strengthen its capital base. JC Flowers will hold a 40.1% stake of the business.

However, the transfer of business is still subject to OneSavings Plc being granted permissions by the FSA to operate as a bank and confirmation of the transfer by the regulator.

Kent Reliance has now applied to the FSA for the transfer to be confirmed.

Malcolm McCaig, chairman of KRBS, said: "The board of KRBS is delighted that members have voted to approve this transfer. Our joint venture with J.C. Flowers will mark the beginning of an important new chapter in the history of the society and will give us a strengthened capital base."

David Morgan, managing director Europe and Asia Pacific, JC Flowers & Co, said: "We look forward to joining forces with KRBS. The injection of new capital will make the business stronger and able to take advantage of opportunities as they arise."