NatWest to Receive Minority Stake in Permanent TSB in Exchange for Irish Assets
July 23 2021 - 2:50AM
Dow Jones News
By Joe Hoppe
NatWest Group PLC said Friday that it has agreed a non-binding
memorandum of understanding with Permanent TSB Group Holdings PLC,
as part of its phased withdrawal from Ireland.
The U.K. bank said that together with its subsidiary Ulster Bank
Ltd., it has entered the memorandum with the Dublin-listed lender
for the proposed sale of performing non-tracker mortgages,
performing micro-SME loans, the subsidiary's asset-finance business
and a subset of its branch locations.
This includes around 7.6 billion euros ($8.95 billion) of gross
performing loans as of March 31 and 25 locations. Ulster Bank had
total retail, micro-SME and asset finance gross lending of EUR16.1
billion in Ireland as of March 2021. Around 400-500 employees will
also be transferred.
In return, the memorandum proposes that NatWest receives a
minority non-consolidating equity stake in PTSB as part of the
consideration for the deal.
NatWest first said it would leave the Irish market on Feb. 19.
It said then that its Northern Irish banking business would be
unaffected.
The potential sale is subject to due diligence, further
negotiation and agreement, regulatory and other approvals and other
terms, and NatWest said there is no guarantee of a sale.
Write to Joe Hoppe at joseph.hoppe@wsj.com
(END) Dow Jones Newswires
July 23, 2021 02:39 ET (06:39 GMT)
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