24th Oct 2016 05:51
LONDON (Alliance News) - A consortium comprising private equity firms and the Church of England has been paid at least GBP180.0 million by Royal Bank of Scotland Group PLC for backing the bank's aborted attempt to float its Williams & Glyn business on the stock market, the Guardian reported.
RBS scrapped the initial public offering of Williams & Glyn in August, saying it has spent around GBP1.50 billion over seven years trying to spin-off the business but would now seek to sell it instead. RBS has to sell Williams & Glyn by the end of 2017 to meet European Union state aid rules.
The Guardian found RBS paid the money to the consortium, which was formed three years ago to participate in the float of Williams & Glyn. They put GBP600.0 million into RBS via a bond, which was due to be exchanged for shares in the newly-floated Williams & Glyn.
The consortium was paid GBP184.0 million in interest by RBS between September 2013 and the end of 2015, the newspaper said.
https://www.theguardian.com/business/2016/oct/23/rbs-paid-consortium-including-church-of-england-at-least-180m-for-flotation
By Sam Unsted; [email protected]; @SamUAtAlliance
Copyright 2016 Alliance News Limited. All Rights Reserved.
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