NBNK revises offer for 632 Lloyds Bank branches

British banking investment vehicle NBNK Investments Plc (LON:NBNK) said on Wednesday it had tabled a revised offer to buy the retail and commercial business Project Verde of Lloyds Banking Group Plc (LON:LLOY) before Lloyds’ board meeting later today.

The bidder said its fresh proposal outlines the basis of future talks with Llyods over a deal. However, due to the pressing calendar for the disposal of the package including 632 Lloyds branches, there is little time left for a deal to be agreed and completed, NBNK said.

Lloyds needs to sell the Verde assets by the end of November 2013, under an agreement with the European Union (EU) in exchange for the state aid received during the financial crisis.

The lender said it would provide updates to shareholders on the divestment plan by the end of this week.

The vendor is also in talks over a deal with the Co-operative Group (Co-op), which remains its preferred bidder.

NBNK’s previous proposal for the Lloyds branches included an alternative demerger, granting Lloyds shareholders an option to get directly cash for their interest, or shares in the combined group, the company has said. It gave no details on its new offer.

With this deal, NBNK aims to create a new nationwide player in UK’s high street banking segment.

As it was created to build a new bank with 4% to 6% of the UK’s sector market and some 400 to 600 branches through acquisitions, the discussions with Lloyds are viewed as key to NBNK’s prospects, it said earlier in June.

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