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Co-operative Bank no longer up for sale

Staff Writer | June 26, 2017
The Co-operative Bank is no longer up for sale as it continues talks with investors to boost its capital reserves.
Co-operative Bank
Banking   The rescue plan
The bank, which almost collapsed back in 2013 due to a £1bn black hole in its finances, said in February that it was beginning a sale process and considering other options to build capital as it failed to satisfy the Bank of England's regulatory requirements.

On Monday, the Co-op reiterated that it is in advanced discussions with investors to raise capital and confirmed that a majority of the key commercial aspects of the proposal have been agreed.

"Given the advanced nature of the proposal, the board has decided to discontinue the formal sale process under the Takeover Code. The bank is, therefore, no longer in an 'offer period' for the purposes of the Takeover Code and, accordingly, the requirement to make disclosures under Rule 8 of the Takeover Code has now ceased.

"If implemented, the rescue plan would enable the Co-op to meet the longer-term capital requirements applicable to all UK banks and to continue as a stand-alone entity. It would also "safeguard the bank's values and ethics".

The Co-op also said that its future regulatory capital requirements have improved since January and it is now targeting sustainable profitability in the medium term and a mid-single digit return on equity in 2021.


 

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