Key facts
- Nationwide and Investec are preparing to bid for UK lender Aldermore.
- CVC Capital Partners is also preparing a potential offer for Aldermore.
- FirstRand, Aldermore's owner, aims to exit the business.
- A September deadline is expected for proposals.
- FirstRand has set aside £750 million for motor finance mis-selling scandal costs.
- Bidders may have the option to bid separately for Aldermore's banking operations and its motor-finance division, MotoNovo.
Nationwide and Investec are among the firms preparing to submit bids for UK challenger bank Aldermore, as its South African parent company FirstRand seeks to exit the business. Private equity firm CVC Capital Partners is also reportedly preparing an offer, with a September deadline anticipated for proposals.
FirstRand announced its intention to sell Aldermore in April, a decision that followed a significant increase in provisions linked to the UK's motor finance mis-selling scandal. The company has set aside £750 million to cover anticipated costs associated with this issue.
Reports suggest that the sale process may allow potential buyers to submit separate offers for Aldermore's core banking operations and its motor-finance division, MotoNovo. This approach could appeal to a wider range of bidders looking to acquire specific parts of the business.