Lord Levene’s bank eyes up online assets
LORD Levene and Sir David Walker’s new high street bank plans to scour the market for potential online banking acquisitions after initially launching a bid for a retail branch network.
NewBank, which does not yet have an official name, is currently eyeing up state-owned assets put on the block by Lloyds Banking Group and Northern Rock. The former’s 600-strong branch divestment is touted as the likeliest target for a deal.
Levene and Walker will then look to add an established internet banking business to their growing stable in order to take advantage of opportunities in non-traditional banking methods. Lloyds’ Intelligent Finance online division is one acquisition possibility being sized up by the team, after the EU’s competition watchdog ruled it should be one of the assets put up for sale by the bank after its taxpayer bailout.
Lloyd’s of London chairman Levene and City grandee Walker plan to list their new vehicle on the Alternative Investment Market by the end of this month, using it as a shell to build a new nationwide retail banking giant to rival newcomers like Virgin Money and Metro Bank.
The project, to which Virgin Money’s former chairman, the late Sir Brian Pitman, was a founding consultant, has already received funding pledges from as many as 12 major City institutions, including Aviva Investors and F&C.
The institutions are expected to inject around £2bn into the new bank, which will also aim to raise around £50m at IPO.
Boutique advisory firm Kinmont and investment bank Cenkos have been instrumental in helping to set up the project.
Following the Aim listing, Kinmont will be broker to the new firm, while Cenkos will act as its nominated adviser.