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LONDON (Alliance News) - Arbuthnot Banking Group PLC on Friday said it is planning to sell a significant stake in Secure Trust Bank PLC, a move which will kick off a series of changes for both companies.
Arbuthnot said it is planning to sell 5.8 million Secure Trust shares at 2,500 pence per share, an 11% discount to the closing price of Secure Trust shares on Thursday. The move would raise GBP145.0 million for Arbuthnot and would mean its stake in Secure Trust would fall from 51.9% to around 20%.
The sale will be run by Stifel Nicolaus Europe as sole bookrunner, and the final pricing will be announced in due course, Arbuthnot said.
For Arbuthnot, the sale would represent a fundamental change in its business under AIM rules and so will have to be approved by its shareholders. Henry Angest, chairman and chief executive of Arbuthnot, has proposed signing an irrevocable undertaking to approve the deal and, given he holds a 55% stake in the business, Arbuthnot expects the plans to be passed. The meeting is due to take place on June 14.
Arbuthnot intends using the proceeds from the sale to accelerate its own growth, including the private and commercial banking business within its Arbuthnot Latham & Co unit, in addition to developing further business opportunities over time.
Secure Trust, meanwhile, intends to move to the Main Market of the London Stock Exchange following the sale of Arbuthnot's stake. As part of that change, Angest, currently the non-executive chairman of Secure Trust, is set to step down from that role and start the search for a new independent non-executive chairman for Secure Trust.
By Sam Unsted; samunsted@alliancenews.com; @SamUAtAlliance
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