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Citizens Bank files plans to start its spinoff from RBS

Citizens Financial Group, headquartered in Providence, filed initial paperwork late on Monday to partially spin off from its struggling parent, the Royal Bank of Scotland.

In documents filed with the Securities and Exchange Commission, Citizens said the sale should raise $100 million. The initial public offering has long been expected as RBS shrinks its global footprint and tries to repay British taxpayers who financed the once-failing bank’s nearly $70 billion bailout.

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Citizens is the state’s second-largest retail bank, with 252 branches.

While the bank has not disclosed how many shares it is selling and for how much in the SEC documents, Bruce Van Saun, chief executive of the bank group, has said in the past that Citizens would sell a minority share of 25 percent this year as a start.

According to the filing documents, spinning off into a standalone company should cost the bank about $51 million, including rebranding. It also expects to have incremental costs of $34 million annually, since it won’t be able to take advantage of vendors used by RBS and share in the costs of information technology support and compliance officers.

Citizens said it could not comment on the public offering because it was in a “quiet period” required by the SEC.

Deirdre Fernandes can be reached at Follow her on Twitter @fernandesglobe.
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