CVC partners with JC Flowers on potential £1.4bn Aldermore bid
CVC has teamed up with financial services investor JC Flowers to pursue a potential acquisition of Aldermore, the UK specialist bank owned by South Africa's FirstRand, according to a report by Reuters citing unnamed people familiar with the matter.
CVC has joined forces with investment firm JC Flowers to potentially acquire UK specialist bank Aldermore, according to Reuters who spoke to anonymous sources. The UK-based bank, owned by South Africa’s FirstRand, is up for sale after FirstRand announced plans to exit the UK business earlier this year. This decision came after FirstRand set aside £750m (£1.01bn) to cover potential compensation related to the UK’s motor finance redress scheme, which saw a significant rise in provisions.
The potential buyers are required to submit non-binding offers, with the first deadline reportedly set for Tuesday. Sources close to the process have confirmed that FirstRand, Aldermore, and CVC have not commented on the matter, while JC Flowers did not respond to a request for comment. Other financial and private equity investors, including NatWest, Centerbridge, and Warburg Pincus, are also reportedly considering bids. Metro Bank and Lloyds have previously been mentioned as possible suitors.
RBC analysts estimated Aldermore's value at approximately £1.35bn when not including its motor finance operations, which could increase to around £1.45bn when that division is accounted for.
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