Implementation of Strategic Five-Point Plan Continues
SAN FRANCISCO, Feb. 20 /PRNewswire-FirstCall/ --
Providian Financial Corporation (NYSE: PVN) today announced a conditional
agreement to sell its UK credit card business to Barclaycard, a division of
Barclays Bank PLC (NYSE: BARC). Providian expects to receive a premium in the
low double digits. Final closure of the transaction is expected by early
second quarter.
Providian's UK business represents 395 million pounds sterling ($570
million) in receivables and approximately 500,000 account relationships. The
sale also includes facilities in London and Crawley as part of the agreement.
"In November 2001, we announced we would seek a sale of our international
businesses consistent with our five-point action plan to refocus Providian's
operations and to rebuild investor confidence and shareholder value," said Joe
Saunders, CEO and president of Providian Financial. "We are proud of our
accomplishments and express our thanks to the staff in the UK It is gratifying
that Barclays has recognized the value of our UK business and we wish them all
the best in future endeavors."
Commenting on the deal, Barclaycard Chief Executive Gary Hoffman said:
"This is a major development for our business and underlines our position as
the UK's leading credit card brand. The acquisition of Providian's UK credit
card business will extend our customer base and provide us with additional
expertise in key areas including information based customer management.
Providian's expertise will help us move forward significantly in targeting
products more specifically to customers' needs. As a result of this deal,
there will be the opportunity to provide Providian customers access to a
broader range of financial products which come with the Barclaycard brand."
San Francisco-based Providian Financial is a leading provider of credit
cards and deposit products to customers throughout the U.S.
SOURCE Providian Financial Corporation
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Related links:
http://www.providian.com
CONTACT:
media, Laurel Munson, +1-415-278-4770, or
Alan Elias, +1-415-278-4189, or Christine O'Grady, 0207 337 4720,
or investors, Jack Carsky, +1-415-278-4977, or Bill Horning,
+1-415-278-4602, all of Providian Financial
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