Member Article

Richard Branson set for £2 billion Virgin banking float

Sir Richard Branson is reportedly set to float Virgin’s banking arm that City insiders predict could value it at up to £2 billion.

Virgin Money bosses are reportedly in talks to float as soon as early October, though according to Sky News the firm is more likely to wait until next year.

Virgin Money has been performing strongly in recent months, with a new current account making strong progress in Scotland and Northern Ireland before its wider nationwide launch.

Last year, Virgin Money made an underlying profit of £53.4 million in 2013, compared to a £2.5 million loss the year before.

Virgin Money would become the third ‘challenger’ bank to sell shares on the London Stock Exchange if it floated this year; OneSavings listed during the spring, ad TSB was spun out of Lloyds Banking Group as part of the bank’s settlement with Brussels after its taxpayer bailout in 2008.

The Virgin Group, which owns 46.5% of Virgin Money, plans to retain a large a shareholding as possible after a flotation according to reports.

Last month, Virgin Money announced a deal to raise £160 million in the debt markets in order to repay part of a financing package taken on when it acquired Northern Rock from the Government in 2011.

The bank declined to comment on Saturday on the potential timing of a flotation, which is being handled by Bank of America Merrill Lynch and Goldman Sachs.

This was posted in Bdaily's Members' News section by Clare Burnett .