CVC Prepares Potential Aldermore Offer Ahead of September Deadline
CVC Capital Partners is preparing a potential offer for UK challenger bank Aldermore. The move adds to a growing list of bidders circling the lender as parent company FirstRand seeks to exit the business.
CVC Timeline and Process
CVC has been preparing for a possible transaction for several months. The firm is expected to submit a proposal before a September deadline, according to a report by Sky News cited in Private Equity Wire.
FirstRand Exit Background
Aldermore is owned by South Africa’s FirstRand. FirstRand announced in April that it intended to sell the UK lender. The decision followed a sharp increase in provisions linked to the UK’s motor finance mis-selling scandal, with FirstRand setting aside £750m to cover anticipated costs.
Competing Bidders and Asset Split
Lloyds Banking Group, Shawbrook and Metro Bank have all previously been reported as potential bidders. Metro Bank is now understood to be unlikely to proceed. Advisers are expected to give potential buyers the option of submitting separate offers for Aldermore’s banking operations and MotoNovo, its motor-finance division, according to Private Equity Wire.
Aldermore provides lending and savings products to individuals and small and medium-sized businesses. MotoNovo is focused on vehicle finance.
CVC Strategic Angle
A successful bid would represent another move into financial services for CVC and would give the buyout firm an opportunity to acquire a UK banking platform at a time when consolidation among specialist lenders is gathering pace, per the Private Equity Wire report.
