Press Release :: Barclays
Barclays Bank PLC has agreed to acquire Standard Life Bank Plc from Standard Life Plc for a consideration of £226m, payable in cash upon completion.
Under the terms of the transaction, Barclays will acquire a savings book of approximately £5.5bn, as at 30 June 2009, and a mortgage book with outstanding balances of approximately £8.8bn, as at 30 June 2009, with an average indexed loan to value ratio of 48% at that date. On completion, approximately 270 Standard Life employees will transfer to Barclays.
Standard Life Bank reported IFRS underlying profit before tax of £26m for the year ended 31 December 2008 and £15m for the half-year ended 30 June 2009. Standard Life has confirmed to Barclays that Standard Life Bank has traded well since 30 June 2009.
The price is based on an estimated tangible net book value of £293m and is subject to adjustment based on changes to Standard Life Bank’s tangible net book value at completion. Completion is subject, amongst other things, to regulatory approval and is expected to occur in the first quarter of 2010.
Separately, Barclays UK Retail Banking and Standard Life have also agreed heads of terms to enter into a strategic agreement to explore joint opportunities in the UK retail long-term savings and investments sector. The initial focus is expected to be on the development of a multi-channel, simplified pension product.
Frits Seegers, Chief Executive of Barclays Global Retail and Commercial Banking, said: "The acquisition of Standard Life Bank is a good fit with Barclays existing UK retail banking business. This transaction brings to Barclays high-quality savings and mortgage books, and an attractive customer base. We also look forward to working together with Standard Life in the long-term savings and investments sector. We believe that we will be able to drive significant value for customers and shareholders – both through this acquisition and through the strategic initiative."
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