W&G lists on AIM and targets RBS deal
W&G Investments, a vehicle set upto buy assets from the Royal Bank of Scotland, has raised £15m and listed on AIM.
W&G, whose directors include veteran North West corporate banker John McGuire and is chaired by Andrew Higginson, the Bury-born former finance director of Tesco, says it values the RBS assets, known as Project Rainbow – at more than £1bn.
The assets which RBS must sell as a consequence of its tax-payer bail-out during the financial crisis, include 315 branches serving 1.7 million retail customers and 230,000 small and medium-sized business accounts
W&G Investments has the backing of some major City institutions including Schroders, Threadneedle and Lansdowne Partners.
RBS has already received two rival offers, one is from a consortium backed by the Church of England and a second promoted by private equity firms AnaCap and Blackstone.
In a statement Mr Higginson said: “”We are delighted to have completed the admission of W&G Investments to AIM, which provides us with the funding needed to continue to evaluate the potential acquisition of the Rainbow Assets.
“We believe that the relevant experience of our board and the backing of a broad range of institutional investors amount to a compelling proposition for RBSG to divest these assets.
“As well as helping RBSG to divest the Rainbow assets in accordance with the EC’s requirements, we believe that our approach will enable the creation of a strong challenger bank which will focus on delivering excellent products and service to both corporate and retail customers.”
