CVC has teamed up with financial services investor JC Flowers to pursue a potential acquisition of Aldermore, the UK specialist bank owned by South Africa’s FirstRand, according to a report by Reuters citing unnamed people familiar with the matter.
FirstRand is seeking to sell Aldermore after announcing plans to exit the UK business earlier this year. The decision followed a significant increase in provisions related to the UK’s motor finance redress scheme, with FirstRand ultimately setting aside £750m ($1.01bn) for potential compensation linked to mis-sold loans.
Prospective buyers have been asked to submit non-binding offers, with the first deadline understood to be Tuesday, according to two people familiar with the process. FirstRand, Aldermore and CVC reportedly declined to comment, while JC Flowers reportedly did not respond to a request for comment.
A number of other financial and private equity investors are also understood to be considering bids. Potential suitors include NatWest, Centerbridge and Warburg Pincus, while Metro Bank and Lloyds have previously been reported as possible bidders.
RBC analysts estimated earlier this month that Aldermore could be worth approximately £1.35bn excluding its motor finance operations, rising to around £1.45bn when that business is included.
