Shares in cash shell NBNK Investments have fallen 42.5p to 47.5p a share after they returned from suspension following the news that it has failed to secure the acquisition of a banking operation.
NBNK could not come to terms with Lloyds Banking Group over the purchase of its Verde asset package. There are no more suitable acquisitions to pursue.
NBNK was set up by a number of banking and political grandees to acquire bank branches when the big banks are forced to sell off some of their branches. In August 2010, NBNK raised £50m at 100p a share from the likes of Invesco, Aviva, Baillie Gifford, F&C and Blackrock.
Lloyd’s of London chairman Lord Levene, holds the same role at NBNK, and Sir David Walker is deputy chairman. Gary Hoffman resigned as boss of Northern Rock in order to take up the role of chief executive of NBNK in May 2011.
NBNK had £41m in the bank at the end of June 2011 but there have been subsequent costs in trying to secure an acquisition.
Management says that it should be able to return nearly 40% of the cash it originally raised – nearly £20m (40p a share). NBNK is valued at £23.8m, which is a premium to the cash left in the bank.
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