Rumour: Allco/Deutsche In Take Over Talks With Collection House

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By Rudi Filapek-Vandyck

Long time struggling debt (and bad press) collector Collection House (CLH) has admitted to the stock exchange it is in talks to sell part or all of its operations.

Trade magazine The Sheet reports this morning it believes the most active discussions are those with Allco Equity Partners (AEQ).

The move has some logic as AEP, in a joint bid with Deutsche Bank Capital Partners, bought Baycorp Collection Services from Baycorp Advantage (BCA) earlier this month, while AEP and DBCP own another debt collection agency in New Zealand.

It the trade magazine’s understanding that the board of Collection House wants an offer of $2 a share to endorse any takeover.

Shares in Collection House ended at $1.11 yesterday, down from $1.20 on Tuesday.

The Sheet adds newspaper the Courier Mail has discounted the prospect of an offer from US-based firm NCO, which recently took control of the residual business of Australian Receivables (formerly Receivables Management Group).

Allco Equity Partners is part of the newly established Allco Finance Group (AFG).

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