WL Ross Takes Stake in NBNK Investments

WL Ross & Co. is buying up between 29.9% and 37.8% of the stock of NBNK Investments PLC. The firm is paying 39 pence per share for the stake, it announced Thursday. Upon completion of the transaction, Wilbur L. Ross Jr. will be elected Non-Executive Chairman of NBNK, the firm said.

WL Ross & Co. LLC (“WL Ross”) announced today that it has agreed to purchase up to 21,348,003 new Ordinary Shares of NBNK Investments PLC (“NBNK” or the “Company”) at a price of 39 pence per share.

The amount of new Ordinary Shares to be purchased will depend on the level of acceptances of a concurrent tender offer by NBNK of its shares. Following completion, WL Ross will own between 29.9% and 37.8% of the stock. Institutional holders of at least 62% of the NBNK shares have confirmed that they will not tender for cash and will retain their shares. In light of shareholder support for this proposal, NBNK will not now proceed with its planned liquidation. Upon completion of the transaction, Wilbur L. Ross, Jr., Chairman and Chief Executive Officer of WL Ross, will be elected Non-Executive Chairman as Lord Peter K. Levene steps down. An NBNK shareholder meeting has been called for 8 January 2013.

NBNK had been previously organized by several institutions in London, United Kingdom as an AIM-listed vehicle for investing in financial service companies which have been dislocated by the recent economic crisis in the United Kingdom. AIM is the London Stock Exchange’s international market for smaller growing companies.

WL Ross is acknowledged as one of the asset management industry’s leading turnaround investing groups. Based in New York with offices in Tokyo, Beijing, and Mumbai, WL Ross oversees approximately $9 billion in assets with investments across North America, South America, Europe, and Asia. Funds managed by WL Ross have made significant investments in the UK, Irish and US financial services sector as the industry recovers from the global financial crisis and adapts to the new economic and regulatory landscape emerging in its aftermath.

Since 2007, WL Ross has substantial ownership and board representation in five US banks, including Amalgamated Bank, BankUnited, Bank of the Cascades, Talmer Bank and Sun Bancorp, as well as three mortgage originators and servicers: Berkeley Point Financial, Capital Markets Cooperative and Homeward Residential. More recent financial services investments include the Bank of Ireland and Virgin Money. In addition, WL Ross has made significant investments in residential and commercial mortgages and mortgage-backed securities through its Invesco Mortgage Recovery Fund and owns the majority of shares of VTG, the largest railcar leasing company in Europe.