The group of investors who rescued the bank by injecting almost £1 billion last year will therefore own an even larger stake. However, Co-op Group will remain the single biggest shareholder.
Co-op Bank also announced that its chairman, Richard Pym, intends to step down by the end of the year.
The bank released a statement yesterday detailing its plans to raise capital, adding that it had the support of its five largest shareholders for the move.
Chief Executive Niall Booker said:
"If successful, the additional capital to be raised through this transaction will enable us to reset our starting capital position for the execution of business plan to return to our roots as a bank focused on our retail and SME customers with values and ethics at the heart of our business."
The Co-operative Group released the following statement today:
"The Co-operative Group notes today’s announcement from The Co-operative Bank in relation to its £400m capital raising and confirms its participation, as described in the Bank's announcement. While the size of the Group’s shareholding will be reduced following the capital raising, we will retain a significant stake and expect to remain the single largest shareholder. The Group remains supportive of the Bank and its strategy."
