arbuthnot banking group sells securities division

Arbuthnot Banking Group is to sell its securities division to Westhouse Holdings, subject to FSA approval.

arbuthnot banking group sells securities division


The deal is still subject to regulatory approval from the FSA although it is expected to be completed, for an as yet undisclosed amount, by the end of the year.

This follows the flotation on AIM on 2 November of its Secure Trust Bank, valuing the business at £102m. The Arbuthnot Banking Group still holds a majority share in Secure Trust Bank.

Earlier this year, the Arbuthnot Board had hoped to continue to support its securities business but the change in market conditions forced their arm, hence the sale.

In its official statement: “The Board is now of the view that there will be consolidation within the investment banking and securities markets and that the interests of the clients and staff of Arbuthnot Securities will be best served from the proposed change in ownership.

“This will free up the resources of Arbuthnot Banking Group to focus on investing further in its other businesses.”

These “other businesses” is the Secure Trust Bank and its private bank and wealth management business, Arbuthnot Latham.

Garth Milne, chairman of Westhouse, shares the market view, commenting: “It is clear that there is overcapacity in the small to medium-sized company corporate broking and advisory market and that, as a result, consolidation is a strategic opportunity.”



Latest Stories