Co-operative Bank in ‘advanced’ talks with investors as sale process continues

The Co-operative Bank has revealed it is undergoing ‘advanced’ talks with a group of existing investors regarding an equity capital raise and liability management exercise.

The company said it continues to hold active discussions about the separation of its Co-operative Pension Scheme (Pace) with relevant parties.

Manchester-based Co-op Bank went up for sale in February. A takeover, it said, will enable it to meet the long-term capital requirements applicable to all banks in the UK.

The wider Co-Operative Group currently owns 20% of bank.

Issuing an update on the sale this morning (June 19), the firm said the process of securing a buyer is still ongoing.

It confirmed that the sale process and capital raise options are being discussed with the Prudential Regulation Authority (PRA), which it said has welcomed both.

Speaking in March, when the bank posted losses of £477.1m, chief executive Liam Coleman said he was ‘pleased’ with the response to the takeover.