CVC Prepares Potential Aldermore Offer as FirstRand Plans Exit
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 while parent company FirstRand seeks an exit.
CVC Timeline and Process
CVC has reportedly been preparing for a possible transaction for several months. The firm is expected to submit a proposal before a September deadline, according to Private Equity Wire.
Multiple Bidders and FirstRand Decision
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.
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.
Separate Asset Offers
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 Context
A successful bid would represent another move into financial services for CVC. It would give the buyout firm an opportunity to acquire a UK banking platform at a time when consolidation among specialist lenders is gathering pace, according to Private Equity Wire.
