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Co-op Bank receives non-binding proposals to buy the troubled lender

Published: 07:37 07 Apr 2017 BST

money
Co-op Bank is still planning for a capital raise if it doesn't receive any offers to buy it

The Co-operative Bank said today it has received a number of non-binding proposals from "strategic and financial parties" to buy the struggling lender.

The lender put itself up for sale in February due to continued troubles after having to be rescued from the brink of collapse by a group of US hedge funds in 2013 following the discovery of a £1.5bn hole in its finances.

Potential buyers had until 4 April to submit initial offers.

“The board has selected several parties to enter a further phase during which these parties will be provided with additional information," the bank said. "Each of the preliminary offers selected includes some form of liability management exercise. “

Richard Branson's Virgin Money was reportedly going to make a bid for the Co-op Bank this week. CYBG, the owner of the Clydesdale and Yorkshire banking brands, and a host of private equity giants were also said to be among those eyeing up the bank.

If the disposal plan fails, Co-op will need to raise up to £750mln of additional core capital. 

The Co-op Bank said it is continuing to hold talks with existing and other potential new investors on options to build capital as there is no certainty that an offer will be made for the bank.

“The bank continues to fully discuss both the sale process and the capital raise options with the Prudential Regulation Authority (PRA), which has welcomed the actions being taken.”

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