LONDON (Alliance News) - Secure Trust Bank PLC is planning major acquisitions, the Telegraph reported on Sunday, with Chief Executive Paul Lynam hoping that Arbuthnot Banking Group PLC's move to sell down its majority stake will leave it more able to fund such moves.
"The reality it that Arbuthnot would not be able to support such a transaction, so diversifying the shareholder register opens up a broad range of strategic opportunities that aren?t on the table at the moment," Lynam told the newspaper.
"There are assets on the market such as Williams & Glyn and perhaps the Co-op Bank, and we may be interested in giving those serious consideration," Lynam said.
Secure Trust said on Friday that it will look to leave London's AIM market for smaller companies in favour of a place on the Main Market for more established companies.
Arbuthnot, also listed on AIM, later sold 6.0 million Secure Trust shares at 2,500 pence each. The pricing of the placing was as guided, and the sale generated GBP150 million for Arbuthnot, which sold slightly more than the 5.8 million shares initially intended. Arbuthnot's stake will fall from a 52% majority to a minority position of just under 19%.
http://www.telegraph.co.uk/business/2016/05/29/secure-trust-plans-challenger-bank-buyout-binge/
By Samuel Agini; samagini@alliancenews.com; @samuelagini
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Secure Trust (STB)
Arbuthnot (ARBB)