The Co-operative Group no longer owns any part of the Co-operative Bank after it completed the sale of its remaining 1% stake in the business.
The bank fell into financial difficulty in 2013 and Co-operative Group was forced to sell much of its stake to hedge funds and other investors.
The group reduced it stake from the 20% it held in February 2017 down to 1%, which has now been sold for £5 million.
There will be no changes to customer accounts and the bank will retain Co-operative branding for now, although the ‘relationship agreement’ between it and the group is set to expire in 2020.
The Co-operative Group’s other businesses, including insurance, funeral care and supermarkets, are unaffected by today’s announcement.
A statement from the Co-op Group says:
“In the first half of 2017 there was uncertainty about the long-term future of the Co-operative Bank with the bank announcing the terms of its capital raising plan on 28 June 2017.
“The Co-op was supportive of this plan which saw our shareholding in the bank fall from 20% to 1% in early September. We have subsequently sold our remaining shareholding in the bank.”