Summer sale possible for RBS division
A NUMBER of trade buyers are said to be lining up for Royal Bank of Scotland’s Williams & Glyn division.
The Manchester-based business, which RBS must sell as part of state-aid rules, has been through a very long, expensive and complex separation process from its parent company.
The original plan was for Williams & Glyn to be listed on the stock market, but the bank said last month it would run a dual process alongside the IPO .
The Times said the Edinburgh-based institution would be kick-starting the auction by publishing full accounts for the small business bank alongside its own figures.
The newspaper said taxpayer-owned lender wants to increase interest in Williams & Glyn and to agree a sale over the summer. The division has 300 branches and 1.8 million customers.
RBS, which is 73% government-owned, already publishes some information about Williams & Glyn, which is named after a brand previously used by the bank.
The numbers do not take account of how Williams & Glyn would operate as a separate entity, but RBS is planning to give those details so that would-be buyers gain a better understanding of its performance.
The Times cites Santander, Virgin Money, BBVA, another Spanish bank, is thought to have expressed interest. Secure Trust Bank, a specialist lender run by Paul Lynam, a former RBS banker, as possible buyers.
Santander is viewed as the most credible buyer, but there is animosity between it and RBS after Santander nearly bought Williams & Glyn in 2012 but backed out at an advanced stage. The Spanish bank is believed to be more confident now. With a flotation of its British division off the agenda in the near-term, it is understood to be eager to find an eye-catching alternative.
Virgin Money is regarded as a possible buyer and it could work with a partner or a group to provide financing. Some analysts question whether it has enough experience of business banking to convince regulators to allow it to take over Williams & Glyn.
While RBS hopes to publish accounts for Williams & Glyn on February 26, it may not have them ready in time, possibly delaying them until its first-quarter earnings. RBS has said that it will revert to its plans to float the business if a sale fails.
RBS was ordered to divest a start-up bank alongside other assets by the European Commission in return for the £45.5 billion of state aid that it received during the financial crisis.
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