General view of Co Operative Bank in Derby . PRESS ASSOCIATION Photo. Picture date: Monday November 7, 2011. See PA story. Photo credit should read: Rui Vieira/PA Wire
Mutual insurance company Royal London has called on more than 8,000 members in Tayside and Fife to have their say on a potential £219 million deal to acquire assets of the Co-operative Bank.
The group will hold an extraordinary general meeting on Tuesday to decide on a proposal to acquire the troubled bank’s life insurance and asset management operations.
The deal would see Royal London make an up-front payment of £39m for the twin businesses.
A further deferred payment of £180m from Co-operative Insurance Services would be triggered when approval is gained that the cash can be released for the benefit of the banking group’s shareholders.
If a yes vote is secured, 170 staff will transfer to Royal London, and the funds it holds under management will increase from around £50 billion to £70bn.
Group CEO Phil Loney said: “I regard the potential acquisition that we are asking our members to support as a perfect fit for our business.
“It will add significant value to their membership and, in increasing our customer base by two million people and our assets by £20 billion, is a truly exciting opportunity for the Royal London business.”
