RBS Notes Informal Approaches For Williams & Glyn; Targets Sale Deal By 2016-end

(RTTNews) - Royal Bank of Scotland Group plc (RBS, RBS.L) Wednesday said it has made significant progress in separating Williams & Glyn business, noting that it is now planning to separate the business from RBS in the first quarter of 2017 which remains compatible with the end 2017 divestment deadline.

According to the firm, the strategic attractiveness of Williams & Glyn has been reflected in a number of informal approaches for the business. Therefore whilst continuing preparations for an IPO, the company is planning to launch a trade sale process in first half 2016, and targeting the signing of a binding agreement to sell the business by year end 2016, with full divestment by the end of 2017.

The company remains committed to meeting its obligation under the State Aid agreement to dispose of Williams & Glyn before the end of 2017, as well as ensuring a smooth transition for Williams & Glyn's 1.8 million customers.

RBS submitted the banking licence application for Williams & Glyn on September 30, 2015 and are now working with the PRA and FCA towards obtaining the licence and separating the business from RBS.

As at end of the third quarter, 2015, Williams & Glyn had net loans and advances to customers of 20 billion pounds and customer deposits of 24 billion pounds. Further financial information on Williams & Glyn will be included in RBS's Full Year Results announcement on 26 February 2016.

RBS CEO Ross McEwan said, "Separating out the Williams & Glyn business is a complex process, but we remain focused on meeting our State Aid obligation, achieving full divestment by the end of 2017, and reaching the best outcome for shareholders, customers, and staff."