By Jonathan Braude in LondonNEW YORK (The Deal) -- Would-be banking entrant W&G Investments (UK: WGI) went public on the London Stock Exchange Aug. 20, raising the first 15 million pounds ($23.5 million) of capital towards a planned 1.55 billion pound takeover bid for 315 branches of the Royal Bank of Scotland.
The investment company's beginnings were modest. W&G listed on the Alternative Investment Market, or AIM, the LSE's junior market, with financial advice from Canaccord Genuity and with Canaccord and Fiske, operating as Baden Hill, acting as joint bookrunners.
It then immediately asked that shares be suspended from trading, in line with AIM rules regarding reverse takeovers, because its ambitions are huge.
The initial fund-raising will be used solely for due diligence and other expenses incurred in bidding for RBS's so-called Rainbow Assets, a not-yet-fully carved out business which the seller is being forced to divest in return for European Union acceptance of its government bail-out five years ago.If no agreement is reached and no formal bid is made within six months, W&G promised that any remaining cash would be returned to investors, and the AIM shares cancelled. However, if W&G wins the bidding against two rival offers from private equity consortia, the RBS assets will be reversed into the listed cash shell, enabling the start-up to acquire a ready-made business and set it up as a challenger to the big retail banks and small business lenders already dominating the domestic U.K. market. The new bank would operate under the name Williams & Glyn -- one of the many heritage brands that have disappeared from British town squares as the big banks swallowed smaller rivals over the years. The business, which will be listed on the main board of the LSE once agreement has been reached with RBS, will have assets of 20.5 billion pounds, and 2 million retail and 250,000 small business customers. The exact assets and liabilities remain to be agreed between W&G -- or its rivals -- and RBS. But W&G said in a statement that it is "currently anticipated to have a net tangible book value of approximately 1.55 billion pounds at completion."
Select the service that is right for you!COMPARE ALL SERVICES
Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.
- Real Money + Doug Kass Plus 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV