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Better expects pro forma cash to rise if sale of Birmingham Bank closes

The buyer consortium escrowed £10 million, and the deal is priced at 0.95 times Birmingham Bank’s tangible net asset value as of Sept. 30.

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Better Home and Finance Holding Co. said a consortium bidding to buy its wholly owned subsidiary, Birmingham Bank, has escrowed £10 million as the company works toward completing the sale, pending regulatory approval and other closing conditions, HousingWire reports.

The proposed consideration is 0.95 times Birmingham Bank’s tangible net asset value at closing, which was approximately £56 million, or about $74 million, as of Sept. 30, according to the company’s release.

Better also said it expects pro forma cash to rise to about $140 million based on those Sept. 30 balances if the transaction closes. The company also said it plans to sell 100% of its interest in Birmingham Bank.

Better originally acquired Birmingham Bank in April 2023 after purchasing an initial minority stake in 2022, HousingWire added. The sale process is ongoing, with definitive documentation still required before closing.

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