This Day On The Street
Continue to site
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

The Deal: W&G Makes $2.4B Offer For RBS Bank Branches

By Jonathan Braude in London

NEW 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."
1 of 2

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Real Money

More than 30 investing pros with skin in the game give you actionable insight and investment ideas.

Product Features:
  • Access to Jim Cramer's daily blog
  • Intraday commentary and news
  • Real-time trading forums
Only $49.95
14-Days Free
14-Days Free
BCDRF $5.33 0.00%
BX $27.64 0.00%
AAPL $93.64 0.00%
FB $118.57 0.00%
GOOG $698.21 0.00%


Chart of I:DJI
DOW 17,891.16 +117.52 0.66%
S&P 500 2,081.43 +16.13 0.78%
NASDAQ 4,817.5940 +42.2360 0.88%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs