The Royal Bank of Scotland is paying AMP and Virgin £100m in cash and £65m in security for the remai...
The Royal Bank of Scotland is paying AMP and Virgin £100m in cash and £65m in security for the remaining half of their stake in the joint venture Virgin One. The Edinburgh based bank already owns the other half of Virgin One, a specialist in current account mortgages.
The funding arrangement means the sale will return £120m of shareholder capital to AMP and £45m to Virgin.
The purchase is part of a strategic plan for Royal Bank of Scotland to expand into the UK mortgage market as the number of homebuyers soars.
AMP is to concentrate on the UK fund management market where it owns various subsidiaries including Henderson Global Investors and NPI.
The two step deal also sees the unification of AMP and Virgin's other ventures, Virgin Direct and Virginmoney. These will be merged under the Virgin Money Brand which will sell own-brand investment, pension and life insurance products. Ownership of the merged entity will be split equally between the two companies with the possibility of a float on the horizon.
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