Tungsten Bank to be renamed Wyelands Bank
November 16, 2016: British industrialist Sanjeev Gupta, through Wyelands Holdings Limited, finalised with Tungsten Corporation PLC, the terms of the purchase of Tungsten Bank PLC which is to be renamed Wyelands Bank PLC.
This is following receipt of approval at the beginning of November for a Change in Control from the Prudential Regulation Authority and the Financial Conduct Authority. The transaction will complete in December 2016. The bank will, upon completion, be permitted to accept deposits under the protection of the Financial Services Compensation Scheme.
Gupta said the investment in Wyelands Bank PLC, which is named after his private estate, is part of his wider vision to promote the revival and growth of industrial businesses in the UK. The bank will initially specialise in supply-chain and trade financing for the industrial sector in the UK and internationally.
He added: “I’m eager to promote the development of a deposit-taking institution that will become an industry-friendly source of finance to oil the wheels of British engineering and manufacturing, thereby stimulating growth and job creation.
“There is a clear gap in the market to form and develop a bank in the UK serving these sectors of the economy as well as the deposit market. The constraints with respect to bank financing for smaller industrial players has not eased since the 2008 downturn and has been a key missing component inhibiting business expansion. There remains great potential for domestic and export-led growth but businesses need better working capital funding solutions to do so. Wyelands Bank will aim to be an empathetic champion for British industry, offering innovative solutions and benefitting from a greater understanding of industry’s financial needs. We also believe that there is an opportunity to provide depositors with attractive products in an overly concentrated market place.”
Gupta said: “I’m truly excited about this opportunity and see the potential for substantial growth, fuelled by the new Government’s industrial strategy and the Financial Regulator’s approach to bring more competition to the banking sector.”
The industrialist, whose family group, the GFG Alliance, holds extensive interests in the energy, metals and engineering sectors, has frequently outlined his vision to create a more competitive and sustainable industrial sector in the UK through the application of innovative business models, utilisation of new technologies and increasing use of renewable energy sources.
The investment in Wyelands Bank is yet another step towards achieving his wider vision to create a more fertile environment for manufacturing and engineering, in order to champion the renaissance of a globally competitive British industrial base.
He explained that the bank, as a regulated entity, will be owned, governed and operated independently of the Liberty and SIMEC Groups, which hold the industrial and energy generation interests and assets of the GFG Alliance. He further elaborated: “We have proposed, upon Completion, to appoint an independent Chairman and board of the highest calibre and have retained the existing management who will lead the strategic rollout of the Bank’s business plan. Wyelands Bank is investing in the development of modernised systems and highly-skilled teams which will underpin its future success.”
John Howland Jackson, formerly a Senior Managing Director of ING Bank NV and presently Chairman of Nikko Asset Management Europe, will be appointed Chairman of the Bank upon Change in Control and Iain Hunter, who currently serves as CEO of Tungsten Bank PLC, will continue in his role to lead the management team of the Bank. Previously, he was CEO of CIT Bank Limited.