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Close Brothers Group to sell retail finance unit to Sweden's Klarna Bank

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By Reuters

(Reuters) – Close Brothers Group Plc <CBRO.L> said on Friday it would sell Close Brothers Retail Finance, which provides unsecured finance to consumers through retailers, to Swedish bank Klarna Bank AB.

“The group has concluded that the business does not provide a long-term fit with our predominantly secured business model,” the company said in a statement.

The business, which had a loan book of 66 million pounds as of July 31, will be treated as a discontinued operation in the company’s full-year results to be announced on Sept. 25.

The value of the deal was not disclosed. The company said it expects to close the transaction in the current calendar year.

(Reporting by Arathy S Nair in Bengaluru; Editing by Bernard Orr)