Kent Reliance - demutualising?

Mids_Costcutter

I wonder what the JC Flowers buy-in would mean for the employees of Kent Reliance BS?

Dabble26

Staff could be OK to start with. The last 2 years has seen many jobs shed as the BS started to get into difficulties. A lot of the work is carried out by a sub - firm in India already. Very few staff in Uk - Ann accounts and transfer Docs show something like 35 in total. Nearly all branches gone & only a handful of staff at Chatham HO. HO phone is answered by Mr Lazyb on an answerphone which redirects your call. In answer to your point Mids they must need someone to still clean the toilets! and of course get rid of all the "No" votes.

baby_boomer

jimjames wrote: »

I've seen that as of 31/12/2010 PIBS (a method of funding they use now) are no longer allowed as tier 1 capital so building societies need to get capital from other sources.

Given current capital requirements and the state of the housing market, this is bad news for building societies. (To add to their declining savings balances.)

I've voted in favour of the deal as I hold about ten accounts at other BSs and Flowers offers an outside chance of a payout from these before the whole sector nosedives.

2010

I voted against.
Does anyone know when the outcome of the voting will be known?

Dabble26

Today is the day! The vote takes place on 19th Nov. I do not know when the result will be announced but I imagine it will be out quite soon. Hopefully voting members will have seen sense and have, or will, vote no, and the the management will have to do some work and think again.

jimjames

The vote should be announced at the meeting today which started at 11am. Unfortunately I was unable to attend so am just waiting to hear what the result was. Fingers crossed!

jimjames

The result has just been announced. Gutted but amazed how close it was. Only 75.8% voted in favour, so their margin was just 0.8% above the threshold they needed.

http://www.kentonline.co.uk/kentonline/news/2010/november/19/kent_reliance_building_society.aspx

baby_boomer

Brilliant result.

Let the games begin.

Society members will be able to see if their own society has value - something they have been denied to date by the inertia in the sector as selfish BS directors hang onto their salaries / bonuses / perks / pensions with no regard for their members' best interests.

Change can be good.

I'll certainly advise MSE members if Kent Reliance / Flowers try to take over any society for less than it is worth.

jimjames

It will certainly be an interesting ride to see whether the boards forecasts or the more pessimistic predictions come true.

MarkyMarkD

baby_boomer wrote: »

I'll certainly advise MSE members if Kent Reliance / Flowers try to take over any society for less than it is worth.

The value of anything is what a willing buyer is prepared to pay for it, not some theoretical construct. It's pretty much impossible for an outsider like yourself to verify whether that valuation is "right" or "wrong".

Given that the directors of any selling society have a duty to do what is best for their members, I can't really see why you expect them to sell up to KR/JCF/anyone else for less than a "fair" value.