Co-op Bank’s purchase is a staggeringly good deal for members

Today’s Co-operative Bank purchase of 632 branches from Lloyds Banking Group for £750 million is a staggeringly good deal for members.

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Today’s Co-operative Bank purchase of 632 branches from Lloyds Banking Group for £750 million is a staggeringly good deal for members.

The-Co-operative-Bank
The sandal-wearers amongst you will be happy that Co-operative banking can now be accessed through another 632 banks.

But that would be to miss out yet another example of the hard-won success of a hard-nosed generation of co-operators who are setting up successful co-ops from Co-operative Energy’s service to Lilac Leeds’ affordable housing.

Those hard-nosed co-operators will point to the following numbers on this Lloyds purchase: Lloyds shareholders valued their business very highly in 2006. The net asset value was £1.95 per share, but the shareholders were willing to value that at a multiple of 2.9 times, with the share price recorded at £5-71.5p on December 31st 2006.

 


See also:

Taking on the energy giants: The co-operative insurgency gains ground 11 May 2012

We need more community and co-operative ownership of energy 13 Mar 2012

Institutionalised prejudice against co-ops will delay economic recovery 9 Mar 2012

Northern Rock sale shows Osborne’s failure of ambition on real bank reform 17 Nov 2011

The case for the role of co-operatives in childcare 28 Sep 2011


 

So while many will focus on the fact the Co-op has bought a business with £1.5 billion of equity, in fact, that business was valued by Lloyds shareholders at £4.4 billion. The smart people at the Co-op have just bought a business that capitalism valued £4.4 billion for just £750 million. Smoothies all round!

 


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21 Responses to “Co-op Bank’s purchase is a staggeringly good deal for members”

  1. Shamik Das

    .@CoopBankPR’s purchase is a staggeringly good deal for members, writes @CormacHolly: http://t.co/nUJ6kflH

  2. Political Planet

    Co-op Bank’s purchase is a staggeringly good deal for members: Today’s Co-operative Bank purchase of 632 branche… http://t.co/1xx6u1lg

  3. NewsatLeft

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  4. NewsatLeft

    Co-op Bank’s purchase is a staggeringly good deal for members http://t.co/OEhPmM3T #SustainableEconomy #CooperativeBank #Cooperatives

  5. Michael

    Co-op Bank’s purchase is a staggeringly good deal for members – http://t.co/gOjpRQ4F

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