EQS Equity Special

    RNS Number : 2388X
  Equity Special Situations Limited
  23 June 2008
   


    23 June 2008

    Equity Special Situations Limited
    ("ESS" or the "Company")

    Acquisition of strategic stake in Conister Financial Group PLC ("CFG")
    and
    Issue of Equity

    Equity Special Situations Limited, (AIM:EQS.L) the strategic investment company, is delighted to announce that it has agreed to acquire
a 9.9% interest in Conister Financial Group PLC (AIM:CFG.L), the AIM traded private bank and financial services group ("the Investment") for
a consideration of approximately �4.453 million, satisfied by the issue of new ESS ordinary shares to CFG. ESS is pursuing a strategy of
broadening its investment platform and the Investment is in line with this strategy. The Investment also follows ESS announcements in
February and April 2008 that it had raised �8.625 million via two share placings at �1.95 per share.

    The ownership of a significant stake in a fast growing and entrepreneurial bank and financial services group is a further development of
ESS's strategy of investing in and nurturing relationships with a range of complementary businesses within the financial services sector.
CFG fits well within this strategy as it has a new dynamic management team who are keen to look for potential synergies within ESS's
existing investment portfolio of companies.

    
    
    CFG comprises two principal trading divisions: Conister Trust - the banking division that was formed in the Isle of Man in 1935 that
specialises in providing finance for personal and business use; and TransSend - the recently created prepaid card division.

Conister Trust has a strong capital base, with a Tier 1 capital ratio of 25% and a deposit book standing at record high levels of �62
million. It is the only independent Isle of Man bank and is well positioned to take advantage of its regulatory status and off-shore
location.

    TransSend was created in 2006 to take advantage of the worldwide explosion in the prepaid card market and, in late 2007, launched its
first Mastercard approved global prepaid card programme, issuing 28,000 cards. TransSend has an extensive pipeline of card programmes ready
for launch over the coming months.

    ESS will acquire 5,575,150 new ordinary shares in CFG at a price of 74 pence per share, representing 9.9% of CFG's enlarged issued share
capital. The Investment is to be funded through the issue to CFG of 2,042,705 new ordinary shares of 1p each in the Company ("Consideration
Shares") at 218 pence per share and ESS receiving approximately �0.3 million in cash from CFG. Following the Investment, CFG will hold 9.9%
of ESS's enlarged issued share capital,

    Application for the Consideration Shares to be admitted to trading on AIM has been made and it is expected that the Consideration Shares
will begin trading on AIM on 26 June 2008. The Consideration Shares will rank pari passu with the existing ordinary shares in issue.
Following the issue of the Consideration Shares, the Company will have a total of 20,633,386 ordinary shares in issue.  

    Peter Griffin, Director of ESS, commented:
    "During our operational reviews towards the end of 2007 and early 2008 , it became clear that it would be of great benefit to the
Company to have a strong relationship with a bank in order to complement the other companies within the ESS portfolio. We have been working
on obtaining a significant stake in a private bank for almost nine months now and we are delighted to have concluded a deal with CFG. We
expect to work closely with CFG's management going forward in generating interesting business proposals for them from our existing portfolio
companies and from other companies that join us in the future."

    Arron Banks, Chief Executive of CFG, commented:
    "We have been following the progress of ESS for more than a year and believe that this strategic relationship will be of great benefit
for both groups. We anticipate that, over the coming months, significant synergies will be created and additional business and investment
opportunities will evolve. The new management team at CFG is currently reviewing a number of strategic transactions within the financial
services sector and we look forward to gaining from ESS's input."

    About Equity Special Situations Ltd
    Equity Special Situations is a Guernsey registered investment company that was admitted to AIM in August 2004. Its investment strategy
is to purchase and hold significant stakes in companies and investment funds and then to assist management in company growth. Its current
focus is on the EU financial services sector. Significant holdings include Syndicate Asset Management plc, STM Group plc, Noble Investments
plc and Avarae Global Coins plc. For further information on the Company, please go to www.equityspecialsituations.com. 


    Further information:

    Equity Special Situations Ltd
    Peter Griffin                          +44 (0)1481 751000
    Jonathan Freeman                +44 (0)20 7752 0215

    Noble & Company Limited 
    John Riddell                         +44 (0)20 7763 2200

    GTH Communications
    Toby Hall/Christian Pickel      +44 (0)20 7153 8039



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