The offer from NBNK would see shareholders given the choice of cash or shares in what it describes would be “the UK’s only major, listed organisation solely dedicated to retail and SME banking”.
NBNK, chaired by Peter Levene, the former Lloyd’s Group chairman, believes the offer will ensure there is no price uncertainty or additional costs associated with a separate listing of the Project Verde business.
The investment group added no redundancies would be made, no branches closed and it would become the first no bonus bank.
Levene says: “NBNK offers none of the downsides to Lloyds of a standalone IPO.
“We have the right board, management, strategy and experience to run and grow a large scale banking operation and achieve our plans for Verde. Our shareholders are strongly supportive of our objectives.”
The group has joined the fray after doubts appeared over the bid from the Co-operative Group.
A spokeswoman for Lloyds Group says: “The group acknowledges receipt of a letter outlining an indicative revised proposal from NBNK. However, we continue to negotiate solely with the Co-0perative Group and are continuing to prepare for a divestment through an initial public offering.”
NBNK was a previous suitor to Northern Rock before it was acquired by Virgin.