NBNK confirms new bid for LBG Verde package (2152B)

TIDMNBNK

RNS Number : 2152B

NBNK Investments PLC

12 April 2012

NBNK Investments plc

('NBNK' or the 'Company')

NBNK confirms new bid for Lloyds Banking Group's Verde divestment

NBNK has submitted a revised proposal to Lloyds Banking Group to acquire the Project Verde asset package.

Offer for Verde

The Company's updated proposal offers an alternative demerger structure to Lloyds giving its shareholders the opportunity to benefit directly from the divestment of Verde. NBNK would underwrite 100% of the Verde asset package demerger, offering Lloyds's shareholders (including the Government as the largest shareholder) the option of receiving cash directly and/or receiving shares in what would be the UK's only major, listed organisation solely dedicated to retail and SME banking.

The alternative demerger structure enables Lloyds to separate the Verde business with none of the price uncertainty and additional costs associated with independently listing the business.

NBNK's proposal contains a commitment to making no redundancies at Verde as part of the acquisition, no branch closures and a service-orientated approach to banking which includes becoming the first 'no bonus' bank with no short term incentives for senior managers.

Pragmatic execution plan

NBNK's Board, led by Chairman Lord Levene and Deputy Chairman Sir David Walker, has considerable regulatory, governance and management experience. This will be a significant asset for a separation and transition process. NBNK's management team, led by Gary Hoffman, has considerable experience in the separation and rehabilitation of banking businesses, most recently at Northern Rock.

Throughout the Verde bid process, NBNK has remained in close contact with the FSA and believes it is well placed to meet all applicable regulatory requirements.

NBNK has made substantial progress in its operations and technology planning and is confident that it can successfully transfer the Verde business into its ownership by the EU's November 2013 deadline.

As part of its preparations NBNK will have a best-in-class banking technology platform in place ready to receive the Verde business, thereby reducing the cost and complexity to Lloyds of the Verde separation. NBNK's technology partner, FIS, is the world's largest provider of banking and payments technology whose systems are operationally proven in over 100 countries around the world.

Commenting on NBNK's bid 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."

NBNK's Chief Executive, Gary 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."

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For further information contact:

 
 Pelham Bell Pottinger 
  James Henderson 
  Olly Scott                                             [phone] 
 Cenkos Securities plc (Nominated adviser and broker) 
  Ian Soanes 
  Ivonne Cantu                                           [phone] 
 

About NBNK Investments

NBNK has been established to take advantage of the opportunity which exists in the UK banking and savings market to build (primarily through acquisition) a new and substantial UK bank focused on the retail and corporate SME markets. The Company has been founded by Lord Levene and a group of senior business figures, supported by a number of institutional shareholders. NBNK will focus on the UK market only, initially just in the retail banking and small and medium enterprise (SME) areas but, over time, it intends to expand into wealth management.

As a quoted entity, the Company will aim to offer investors exposure to UK retail banking through a legacy-free, focused investment in UK banking and savings. The Company does not intend to be active in areas such as wholesale, international or investment banking.

The identity and percentage holdings of significant shareholders are:

 
 Invesco Asset Management           29.5% 
 Aviva Investors                    11.5% 
 Baillie Gifford                    9.6% 
 Moore Europe Capital Management    9.4% 
 Och-Ziff Capital Management        9.4% 
 F&C Asset Management               9.0% 
 Blackrock Investment Managers      7.0% 
 JP Morgan Asset Management         6.0% 
 

www.nbnkinvestmentsplc.co.uk

This information is provided by RNS

The company news service from the London Stock Exchange

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