20th Jun 2014 11:06
LONDON (Alliance News) - Secure Trust Bank PLC Friday said it conditionally raised GBP50 million through the placing of 2.1 million shares, while its largest shareholder Arbuthnot Banking Group PLC raised GBP25 million after it sold 1.0 million existing shares at a price of GBP24.00 per share, reducing its stake in Secure Trust to 53.3%, from 67.0%.
The placing price was at a discount of 3.8% to the company's closing share price on Thursday. Secure Trust Bank closed down 3.1% at 2,450.00 pence. It was quoted up 0.2% at 2,500.00 pence Friday morning, while Arbuthnot shares were quoted up 2.0% at 1,170.00 pence.
The placing is conditional on, among other things, approval by the company's shareholders at its general meeting on July 8.
Secure Trust plans to use the proceeds of the placing to finance its organic and inorganic growth opportunities, both within its existing offering as well as into new market sectors which meet its target sustainable return objectives.
"Capital will be selectively allocated to those opportunities that are expected to generate the highest sustainable returns for the group," Secure Trust Bank said.
Arbuthnot Banking Group said it intends to use the proceeds and capital generated from the sale of its stake to support the growth of Arbuthnot Latham & Co and to invest in other businesses in time.
Arbuthnot Latham & Co is a small private bank based in Moorgate in the City of London.
By Anthony Tshibangu; [email protected];
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