BY THE end of next month, Portman Channel Islands Limited will be known as Scarborough. The rebrand is the result of the parent company of the same name striking a deal to buy the Guernsey-based deposit-taking business from its competitor, Portman Building Society.

The subsidiary has had a presence in Guernsey for 15 years.

Its managing director, Steve Le Poidevin, said the change would have no detrimental effect on the business and was great news for growth.

‘We are business as usual under the new parent. All staff will stay in place and they actually want to come in and expand the business,’ he said.

The company employs 11 people and has a geographically diverse deposit book of £600m. and 8,000 customers.

In September, Portman Group announced plans to merge with Nationwide. Two months later, a strategic review of its approach to retail deposit-taking concluded that the Guernsey business was no longer core to the group’s activities.

Mr Le Poidevin, who has been at Portman for three years, explained how the takeover came about. ‘We considered whether we wanted to be part of the Nationwide brand, our own stand-alone company or alternatively sell the business.’

It opted for the last and he said there was a lot of interest before Scarborough came up with the best tender. London-based merchant bank Gleacher Shacklock, a specialist in selling companies, acted as its agent.

‘With their wide contacts, they put the message out that the business was for sale. We got a lot of interest.’

After Scarborough came out on top, extensive negotiations took place to ensure the local staff were safeguarded.

As there is no investor protection scheme in Guernsey, Scarborough is providing a parental guarantee in respect of PCIL’s liabilities, similar to that provided by Portman Building Society until completion of the transaction.

‘This is very important to our line of work. It means the takeover will have no impact on our client base or terms and conditions,’ said Mr Le Poidevin. ‘We have a parent company that wants to take us to the next level – it is a very exciting time. During the last 15 years we have grown substantially and intend to build on that,’ he said. ‘Our first big challenge is to get the Scarborough Guernsey brand recognised not just in the island but internationally.’

Portman Building Society chief executive Robert Sharpe said: ‘PCIL has served the group exceptionally well and I am delighted that we have found a new and committed owner in Scarborough.’

John Carrier, chief executive of Scarborough, said the business remaining within the building society sector was excellent news for its staff and customers.

‘The transaction also demonstrates the confidence we have in relation to our future as a successful independent mutual organisation.’