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Money Shop owner hoists for sale sign over international units

The owner of the Money Shop, one of Britain’s biggest short-term lenders, is hoisting a "for sale" sign over a swathe of its international operations weeks after parting company with its former boss.

Sky News has learnt that DFC Global Corp has appointed Winchester Capital, an advisory firm with links to the family of the late Sir Winston Churchill, to oversee a sale of its businesses in Finland, Poland, Romania, Spain and Sweden.

Discussions are under way with potential buyers, with big names from Wall Street including Fortress and Cerberus Capital Management among those sounded out to gauge their interest, according to insiders.

Sources said the international business could fetch roughly £200m.

The international arm of DFC Global is run by Zitah McMillan, who left her previous role as a director of the Financial Conduct Authority in the aftermath of a botched media briefing relating to its plans for regulating part of the insurance industry.

DFC Global, which is owned by Lone Star Funds, a big investment firm, is already exploring the sale of its operations in the UK and Ireland (Other OTC: IRLD - news) .

Last month, it replaced its US-based chief executive, Bob Stefanowski, with Glen Wakeman, a former GE Money executive in Latin America.

The change at the top of DFC, which also operates in Canada and the US and has more than 10 million customers globally, comes as UK profits have been squeezed by tighter regulation of consumer credit markets.

The company's British operations also include the online lenders Payday UK and Payday Express, and are run by Stuart Howard, who has sought to rebuild fractured relations with regulators.

Regulatory changes in other markets, including Poland, may have an adverse effect on the profitability of the international business.

DFC could not be reached for comment on Thursday.