9th Feb 2007 07:01
HBOS PLC09 February 2007 HBOS ACQUIRES ADDITIONAL 5% SHAREHOLDING IN SAINSBURY'S BANK HBOS announces that it has bought an additional five per cent of theshareholding in Sainsbury's Bank for £21 million from J Sainsbury plc. Thismeans that Sainsbury's Bank, which began trading in February 1997, is now a 50:50 joint venture between HBOS and Sainsbury's. Previously, the ownershipstructure was 55% (Sainsbury's) and 45% (HBOS). The change in ownership follows a business review jointly carried out by bothparties. Both partners believe that the new 50:50 joint venture underlines theshared commitment each has to the long term growth of the business. Board Structure. The Board of Sainsbury's Bank will comprise eight directors - three directorsfrom both HBOS and Sainsbury's and two executives from Sainsbury's Bank. BennyHiggins, HBOS Retail chief executive, will be the new chairman for a period oftwo years. Darren Shapland, chief financial officer at J Sainsbury's, will thenassume the role. Following the appointment of Rob Walker as Chief Executive in Spring 2006,Sainsbury's Bank has made good progress. It delivered a breakeven operatingresult for the six months to 30 September 2006. The new structure underlinesthe commitment both partners have to the joint venture and returning it toprofitability. Product range. Sainsbury's Bank provides a range of financial products including insurance,credit cards, savings and loans. Sainsbury's Bank has access to over 16 millioncustomers per week through the 780 Sainsbury's stores across the UK. Benny Higgins said, "Sainsbury's Bank has strong customer loyalty. The businesshas demonstrated it can acquire and retain customers very effectively. There issignificant potential to grow the business. We aim to do just that." Darren Shapland said, "We are committed to growing the Bank's business and areincreasing our presence in the financial services sector. The Bank's chiefexecutive, Rob Walker, is streamlining the operational structure and developinga broader business plan. The sale of our five per cent for £21 milliondemonstrates the value of the Bank and a 50:50 structure reflects the continuedcommitment of both shareholders'." Notes. 1. Certain statements made in this announcement are forward looking statements. Such statements are based on current expectations and are subject to a numberof risks and uncertainties that could cause actual results to differ materiallyfrom any expected future events or results referred to in these forward lookingstatements. 2. Sainsbury's Bank plc commenced trading in February 1997 and was 55 percent owned by J Sainsbury plc and 45 per cent by The Governor and Company of theBank of Scotland. The Governor and Company of the Bank of Scotland is a whollyowned subsidiary of HBOS plc and now holds 50% of the share capital ofSainsbury's Bank plc. 9 February 2007 Enquiries: Investor Relations Charles Wycks Tel 07747 790456 John Hope Tel 07836 701348 Media Shane O'Riordain Tel 07770544585 Mark Hemingway Tel 07831390751 This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
Sainsbury's