RBS Says It May Miss Williams & Glyn Sale Deadline
April 28 2016 - 10:29AM
Dow Jones News
By Ian Walker
LONDON-- Royal Bank of Scotland Group PLC (RBS. LN) said
Thursday it may not be able to sell Williams & Glyn by the Dec.
31, 2017 deadline, and is exploring alternative means to separate
and sell it.
The 73% government-owned bank also warned that the financial
impact of the sale will now be "significantly" greater than
previously expected. It said it had reached this conclusion after
undertaking extensive analysis, but didn't provide any further
explanation.
The bank announced last December that it was considering selling
its Williams & Glyn unit after receiving interest from
potential buyers, as it races to meet regulations which require it
to shed the business by 2017.
Following its government bailout RBS is required under European
Union state aid rules to spin off 314 branches. These have been
regrouped under the brand Williams & Glyn and need to be
disposed of by the end of 2017.
RBS had planned to launch an initial public offering of the
unit, but after receiving "a number of informal approaches for the
business," it said in December it would also explore a sale to a
competitor in the first half of 2016, which it hopes can be done by
the end of 2017.
The bank said it had made significant progress separating the
branches, which have 1.8 million customers.
Write to Ian Walker at ian.walker@wsj.com
(END) Dow Jones Newswires
April 28, 2016 10:14 ET (14:14 GMT)
Copyright (c) 2016 Dow Jones & Company, Inc.
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