• Text size      
  • Send this article to a friend
  • Print this article

Co-op stake in banking arm to fall further

The Co-op's stake in its banking arm is to be reduced further after the troubled lender unveiled details of a £400 million rescue fundraising.

The mutual currently owns 30% of the bank but this will be cut because the business is not taking up all of its rights in the offer to shareholders.

The Co-op said it will still have a significant stake in the business and expects to remain the single largest shareholder.

The exact size of the Co-op's stake will not be known until the fundraising is complete in a few days' time.

The bank's four other major shareholders, who include US investment firms, are taking part in the fundraising but the Co-op is buying shares using funds raised from selling some of its £120 million entitlement as it looks to keep its holding above 20%.

If the stake in the bank falls below 20%, a guarantee that it must uphold its ethical cooperative values will no longer stand though the business can choose to keep it.

Contextual targeting label: 
Finance

Commenting & Moderation

We moderate all comments on HeraldScotland on either a pre-moderated or post-moderated basis.
If you're a relatively new user then your comments will be reviewed before publication and if we know you well and trust you then your comments will be subject to moderation only if other users or the moderators believe you've broken the rules

Moderation is undertaken full-time 9am-6pm on weekdays, and on a part-time basis outwith those hours. Please be patient if your posts are not approved instantly.

232272