In a statement today, Royal Bank of Scotland Group Plc said that it would be preferring a group led by private equity firms Corsair Capital LLC and Centerbridge Partners LP prior to the public offering of the bank's 314 branches. The Edinburgh-based bank added that the group had agreed to acquire as much as 49% of the business for GBP600 million or USD966 million. The New York firm Corsair would be taking the share in RBS' branches via a share-convertible bond.
After receiving a GBP45.5 billion bailout from the European Union back in 2008 and 2009, RBS has been forced to sell its branches by next year to comply with the conditions of the economic union. Last month, RBS Chief Executive Officer Stephen Hester said although RBS would like to sell its branches through an IPO under Williams & Glyn, the sale would remain open to private investors. RBS Finance Director Bruce Van Saun also added, "This deal concludes what has been a very competitive process, with several highly credible bidders. This transaction demonstrates that Williams & Glyn's is a viable and attractive business which will be positioned as a strong, customer-focused challenger bank."
The statement issued Friday also said that RBS and the UK Treasury would be engaging with the economic union to appeal for an IPO deadline extension.
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