Trade sale for Williams & Glyn alongside IPO
ROYAL Bank of Scotland says it has made “significant process” in its complex divestment of 1.8 million customers to form a new challenger bank, Williams & Glyn.
The new bank, which will have a major presence in Manchester, as RBS already does, must be sold by the end of 2017 to meet EU state-aid rules relating to the huge government bail-out Royal Bank of Scotland received during the financial crisis.
With significant investor interest in bank assets, RBS said that alongside a process to float Williams & Glyn on the stock market, it would launch a trade sale also.
RBS said: “The strategic attractiveness of Williams & Glyn has been reflected in a number of informal approaches for the business. Therefore whilst continuing preparations for an IPO, we are planning to launch a trade sale process in H1 2016, and targeting the signing of a binding agreement to sell the business by year end 2016, with full divestment by the end of 2017.”
As at end Q3 2015, Williams & Glyn had net loans and advances to customers of £20bn and customer deposits of £24bn.
RBS chief executive Ross McEwan said: “Separating out the Williams & Glyn business is a complex process, but we remain focused on meeting our State Aid obligation, achieving full divestment by the end of 2017, and reaching the best outcome for shareholders, customers, and staff.”
