Co-op rival confirms new Lloyds bid
THE company which was beaten by Co-operative Bank to be named as preferred bidder for 632 branches being sold by Lloyds Banking Group has confirmed it has launched a new bid.
NBNK Investments – a London-based plc run by ex-Northern Rock CEO Gary Hoffman – has said it will underwrite 100% of the Project Verde asset package that Lloyds Banking Group is demerging in order to meet state aid rules.
NBNK added that Lloyds shareholders (including the Government as its largest single shareholder) could opt either to take cash directly from the deal and/or shares in the demerged business, which it argued would be “the UK’s only major, listed organisation solely dedicated to retail and SME banking”.
In a statement, NBNK said its deal would allow Lloyds “to separate the Verde business with none of the price uncertainty and additional costs associated with independently listing the business”.
It also pledged that it would not make any redundancies or close branches if a deal was agreed with Lloyds Banking Group.
NBNK’s chairman Lord Levene said: “NBNK offers none of the downsides to Lloyds of a standalone IPO. We have the right board, management, strategy and experience to run and grow a large scale banking operation and achieve our plans for Verde. Our shareholders are strongly supportive of our objectives.”
Mr Hoffman added: “Our objective is to create a new, large challenger bank and brand that will shake-up UK high street banking, operating in the interests of customers. I believe we have tabled a compelling proposition that will invigorate competition, provide jobs and is the right solution for taxpayers.”
The Co-operative Group was named as preferred bidder for the Project Verde assets in December.
However, last month chairman Peter Marks indicated that the transaction – said to be worth £1bn – was not a done deal.
“It is highly complex, it’s not like buying a normal business… this is a carve out of a very large business with millions of customers. It’s highly complex.”
He argued that although the Co-op has a proven track record of running a profitable, ethical bank, the Lloyds deal could be a “step change” for the organisation.
