Last checked at 17 Dec 2008 11:04
Changes to the legal structure of Abbey and Alliance & Leicester
In order to optimise the capital, liquidity funding and overall financial efficiency of the enlarged group, Banco Santander, S.A. ("Santander") intends to transfer its Alliance & Leicester plc ("A&L") shares to Abbey National plc ("Abbey").
Accordingly, the Board of Abbey resolved on 16 December 2008 to issue ordinary shares to Santander in exchange for Santander's shares held in A&L. It is expected that this transaction will take place on or about 9 January 20091.
In addition, Abbey has injected today £950,000,000 of capital into A&L through a subscription of: (i) 234,113,712 A&L ordinary shares for cash at £2.99 per ordinary share; (ii) US$220 million undated subordinated notes issued by A&L; and (iii) Euro 115 million undated subordinated notes issued by A&L. As a result of the subscription of ordinary shares earlier today, Abbey currently holds 35.6 per cent of the issued share capital of A&L.
This injection uses the capital injected into Abbey by Santander on 12th October. This fulfils the agreed commitment to the UK government's banking support scheme and the indications of the potential requirement to provide new capital to A&L given by Santander at the time of its offer.
Two copies of Abbey General Meeting documentation (including Resolutions passed) to give effect to the above have been submitted to the UK Listing Authority, and will shortly be available for inspection at the UK Listing Authority's Document Viewing Facility, which is situated at:
Financial Services Authority
25 The North ColonnadeCanary WharfLondon
E14 5HS
Ends
Contacts
| Matthew Young | Communications Director, Abbey | 020 7756 4232 |
| Anthony Frost | Head of Corporate Communications, Abbey | 020 7756 5536 |
Notes
1. A further confirmatory announcement will be made once Abbey has acquired Santander's shares in A&L.