Egg to sell French savings and online brokerage unit to ING Direct

Egg to sell French savings and online brokerage unit to ING Direct

UK Internet bank Egg has received an offer for its savings and online brokerage business in France - which includes approximately 45,000 savings and investment accounts - from ING Direct.

The bank says it has granted ING Direct France exclusivity to conclude the agreement, although financial terms were not disclosed.

In a statement, Egg says the partial disposal could result in the re-deployment of up to 40 of its 450 employees in France and would reinforce continuity of service and product availability to its customers in the country.

Shares in Egg were up 3.10% in morning trading to 97.75 pence on the news.

Egg said last week it had received an offer for its unsecured lending business in France, which includes 66,000 credit card customers, from Banque Accord.

In October last year Egg said it was seeking a joint partner for its French subsidiary, but failed to find a purchaser willing to make the investment required in the business.

The UK bank finally called time on its business in France in July. At the time majority shareholder Prudential was seeking to sell its 79% stake in Egg and the move to close the French business was an attempt to make the online bank more attractive to potential buyers. Prudential has since abandoned any sale plans.

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