RBS to sell 50% shareholding

RNS Number : 0306A

Royal Bank of Scotland Group PLC

28 July 2008

 



28th July 2008

RBS to sell 50% shareholding in Tesco Personal Finance to Tesco

The Royal Bank of Scotland Group plc (RBS) today announces that it has agreed to sell its 50% shareholding in Tesco Personal Finance (TPF) to its joint venture partner, Tesco plc for a cash consideration of £950m, subject to transaction adjustments. As part of this transaction, RBS will continue to provide certain commercial services to TPF post completion.

Sir Fred Goodwin, Group Chief Executive said: 'Over the last 10 years RBS and Tesco have built a strong and successful joint venture. At this stage of its maturity it is appropriate for TPF to move to single ownership for the next stage of its growth and we wish them well with their future plans'

The sale is subject to regulatory approvals and completion is expected to take place before the end of 2008.

Information on Tesco Personal Finance

TPF was established in 1997 as a joint venture between Tesco Plc and Royal Bank of Scotland Plc. During this time TPF has built up 5.5 million customer accounts and now offers more than 25 different products. Products are marketed through Tesco's UK stores and internationally in Ireland, Hungary and Poland.  In the year to 31st December TPF reported profit before tax of £206m, total assets (net of intra-group funding) were £4.5bn and RWAs were £4.0bn. RBS anticipates a profit on disposal on completion of approximately £500m.

ENQUIRIES:

RBS

Richard O'Connor, Head of Investor Relations

(T)    [phone]

(M)     [phone]

Carolyn McAdam, Group Head of Media Relations

(T)    + 44 (0) 131 523 2055

(M)    + 44 (0) 7796 274968

 

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