JC Flowers and Bain Capital Credit to acquire Co-Op Bank
By Simon Jessop
LONDON (Reuters) – The cooperative bank said on Wednesday that JC Flowers and Bain Capital Credit had agreed to buy a minority stake in the company from an existing investor, alongside a business update that showed the lender’s turnaround was in progress. ahead of schedule.
The two buyout groups were to buy the 10.01% of the company’s A shares and 12.05% of the B shares currently held by BlueMountain, the Co-Op Bank said in a statement, without giving financial details.
The agreement remains subject to regulatory approval.
Along with its smaller peers, the challenger bank has struggled to reduce the market dominance of the UK’s major lenders, hit by low interest rates and the impact of COVID-19, which has led some analysts expect further consolidation in the sector.
As the pandemic approaches, the lender announced job losses and branch closures last year as it sought to stabilize the business, which chief executive Nick Slape said is now paying off .
The bank had made a pre-tax profit of £ 7.2million in the three months leading up to the end of March and the lender’s restructuring plan was ahead of schedule, he said in a statement. separate business update.
Slape, who was named CEO last year, added that he expects the bank to return to “sustainable profitability” from 2021.
“By the half year, we will have reached the midpoint of our turnaround strategy and are ahead of where we expected,” Slape said.
(Reporting by Simon Jessop; Editing by Dhara Ranasinghe)