Banco Sabadell already has a customer focused, private banking business in Miami and as indicated when we announced the sale of our Spanish retail operations to Banco Sabadell in April we continue to explore how the groups can collaborate effectively. This agreement evidences where such collaboration can be beneficial for both our customers and the business. The senior client facing team of the Business is expected to transfer to Banco Sabadell on completion of the Transaction. The Group will be contacting clients shortly in relation to the Transaction.
The Group’s UK-offshore businesses including the Channel Islands, Isle of Man and Gibraltar will not be affected as a result of the Transaction. The Transaction builds on the commitments we made as part of the Group Strategic Review to reduce and simplify our international presence and build our wealth business by focusing on the UK, Channel Islands and the UK Expat marketplace. Going forward, the Group’s wealth strategy is focused on serving mass affluent and affluent customers within the UK and Channel Islands, and those with UK connections.
As of 31 March 2013 the assets under management of the Business were approximately £0.8 billion and the total balance sheet assets were approximately £35 million. The Business reported a loss of approximately £3 million in 2012. The total consideration, payable in cash, for the Transaction is up to approximately £8 million, of which we expect to receive approximately £4 million at closing, with the rest deferred and payable in the year following completion of the Transaction, contingent upon the performance of the Business in that period.
In addition the total assets figure includes other clients’ assets such as loans and derivative products which will be transferred to Banco Sabadell at book value. The transaction is expected to result in an overall gain on sale and be capital accretive, although not material from a group perspective. The sale provides further evidence of the significant progress being made in simplifying the Group. The proceeds of the Transaction will be used for general corporate purposes. The transaction is subject to a number of conditions, including regulatory approval, and is expected to complete by the end of 2013.