real-time news and commentary for investors
Tuesday, Aug 20
RBS set to receive offer of up to £1.5B for branches
- W&G Investments, a consortium of investors and pension funds, today intends to bid up to £1.5B to acquire 316 bank branches from RBS (RBS), with the offer to comprise £1.1B up front and £400M depending on performance.
- W&G is also set to raise £15M in an IPO, money the group will use to fund its due diligence of RBS.
- The bank is selling the outlets as part of the conditions for its £45.5B taxpayer bailout in 2008 and 2009. The company has until 2014 to divest the branches unless it receives an extension from the EU.
- RBS has received two rival offers, including one from a consortium backed by the Church of England and another involving AnaCap and Blackstone (BX). The bank is also mulling an IPO of the branches.
- W&G's offer will come after Santander dropped a £1.7B offer in October last year.