Arbuthnot Banking: Share Sales Herald New Phase
Edison | Jun 03, 2016 06:48AM ET
Following the recent sale of Everyday Loans Group, Arbuthnot Banking Group (LON:ARBB) has provided further strategic flexibility to Secure Trust Bank through the proposed sell down of its majority stake to 18.9%. The move also opens a new chapter for ARBB simplifying its corporate structure and generating substantial capital for redeployment, including the development of its commercial banking business. For the moment, the market appears particularly conservative in its valuation of the group and we see the book value of over £19 as a reasonable balance of the opportunities and risks involved in this new phase in the group’s history.
Sale of Secure Trust Bank shares
On 27 May ARBB announced the sale, conditional on shareholder approval, of a 33% holding in Secure Trust shares to institutional investors. The sale will leave ARBB with a stake of below 20%, so the investment will be treated as an associate investment and Secure Trust will no longer be consolidated. ARBB indicates that a profit of £110m will arise and the group’s surplus capital is expected to increase by over £90m. The rationale for the deal was to provide Secure Trust with more flexibility in its strategic options while crystallising value and providing capital for ARBB to deploy.
To read the entire report Please click on the pdf File Below
Arbuthnot Banking Group - Sale Of Secure Trust Shares Heralds
Get The News You Want
Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.