Madrid, February 26 (Europe Press) –
The British government disposed of the last assets in the public possession of the former Northern Rock newspaper, which was nationalized in February 2008, as well as Bradford and Bingley, which was nationalized in September of the same year, for 5,000 million pounds (5,760 million euros), it confirmed. The UK Treasury, which after more than a decade shut down one of its most controversial chapters in the 2008-2009 financial crisis.
“The sale marks an important milestone,” Treasury Secretary John Glenn declared, referring to the government’s pledge last March to return both entities into private hands. “We did just that,” he said.
UK Asset Resolution (UKAR), the entity created in 2010 to manage the sale of the assets of the nationalized entities, has reached an agreement to sell the issued capital to Bradford & Bingley plc (B&B) and NRAM, which is pooling the remaining assets from the former Northern Rock, into a consortium of its form Davidson Kempner Capital Management and Citibank.
“This sale ends government ownership in B&B and NRAM, including their loans, with taxpayers fully repaid and restoring the legal and regulatory responsibility of operating companies to the private sector,” UKAR noted.
The public agency stated that the deal will take place in two phases, where the loans will be sold in the first place to Citi, which is expected to be completed in the coming weeks, while the second phase will be completion. The sale of the two entities’ ownership to Davidson Kempner, which is expected to take place in the summer.
The UK Treasury and UKAR insisted that although the sale involves a change in ownership of B & B and NRAM properties, clients do not need to take any action and there will be no changes to loan terms or transactions such as the outcome of the operation.