Sainsbury’s has sold 5% of Sainsbury’s Bank to HBOS for £21m.The bank will now be a 50-50 joint venture between HBOS and Sainsbury’s with each having equal control of the business and input at board level.
HBOS retail chief executive Benny Higgins will be chairman of the bank for two years before Darren Shapland, Sainsbury’s chief financial officer, takes over.
Shapland says: “We are committed to growing the bank’s business and are increasing our presence in the financial services sector. The bank’s chief executive, Rob Walker, is streamlining the operational structure and developing a broader business plan. The sale demonstrates the value of the bank and a 50-50 structure reflects the continued commitment of both shareholders.”
HBOS previously owned 45% of Sainsbury’s Bank, which launched in 1997.