Clydesdale suitor has no fear over raising cash

The group, whose shares were suspended yesterday, is believed to be talking to National Australia Bank (NAB), owner of Clydesdale and Yorkshire banks which together have 339 branches.

NBNK, chaired by City grandee Lord Levene, is looking to acquire the banks and merge them with the assets of Lloyds Banking Group that are up for sale.

The suitor’s market value is just £45 million and some have expressed doubts about its ability to raise the estimated aggregate of £3.5-4 billion to buy Clydesdale and Yorkshire as well as 632 Lloyds branches, Intelligent Finance and the assets of Cheltenham & Gloucester.

However, NBNK is said to be confident that its array of big investors are capable of providing the firepower for it to strike a major deal.

Among institutions holding 3 per cent or more of NBNK are Invesco, BlackRock Investment Management, JP Morgan, UBS and Bailie Gifford.

One banking analyst said: “You’ve got to remember serious financial backers took stakes in NBNK to fund a major deal. It is the vehicle’s only raison d’etre. They should be good for the money.”

NBNK said: “In view of the size of the operations NBNK is seeking to acquire, any of which would be a reverse takeover pursuant to the AIM [Alternative Investment Market] rules for companies, and the level of ongoing press speculation concerning possible acquisitions, trading in the company’s shares will now be suspended until such time as an admission document is published in relation to an acquisition or the talks conclude.”

NBNK was formed for the purpose of making acquisitions in the banking sector to provide a competitor to the Big Five on the high street.

NAB chief executive Cameron Clyne has repeatedly claimed the bank’s UK arm is well‑placed to take part in sector consolidation but has never specified whether as a purchaser of seller.

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