Private equity firms are expected to place bids for Aldermore, owned by South African bank FirstRand, reports Sky News.
Amongst the potential bidders are CVC Capital Partners and Lloyds Banking Group.
FirstRand has owned Aldermore Group, which includes Aldermore Bank and MotoNovo Finance, as a subsidiary since 2017.
Bidders could be given the option of making separate offers for Aldermore’s banking operations and MotoNovo, reports Sky News.
Aldermore was put up for sale earlier this year amid conversations surrounding motor finance mis-selling.
FirstRand could be liable for around £750m in payouts under the Financial Conduct Authority redress scheme.
In April, FirstRand announced it would exit the UK motor finance market in response to the FCA redress scheme which it said was “deeply flawed, disproportionate and unfair.”
