The high street lender Metro Bank has been approached about a private equity-backed takeover in a move that could lead to the disappearance of another company from the London Stock Exchange.
Sky News has learnt that Metro Bank was approached in the last fortnight about an offer to take it private spearheaded by the financial services-focused buyout firm Pollen Street Capital.
Pollen Street is one of the major shareholders in Shawbrook, the mid-sized bank which in the past has approached Metro Bank about a merger of the two companies.
In recent months, Shawbrook’s owners have stepped up efforts to identify a prospective corporate combination, holding tentative talks with Starling Bank about a £5bn tie-up, while also drawing up plans for a stock market listing.
The takeover approach to Metro Bank comes as it puts a traumatic period in which it came close to insolvency firmly behind it.
In November 2023, the lender was rescued through a £925m deal comprising £325m of equity – a third of which was contributed by Jaime Gilinski Bacal, a Colombian billionaire – and £600m of new debt.
Mr Gilinski now holds a near-53% stake through his investment vehicle, Spaldy Investments, and sits on the company’s board.
Since the bailout deal, Metro Bank has cut hundreds of jobs and sold portfolios of loan assets, at the same time as chief executive Daniel Frumkin has improved its operating performance.
Shares in Metro Bank have more than trebled in the last year as its recovery has gathered pace.
On Friday, the stock closed at 112.2p, giving it a market capitalisation of just over £750m.
At one point in 2018, the lender – which promised to revolutionise retail banking when it opened its first branch in London in 2010 – had a market capitalisation of £3.5bn.
Metro Bank became the first new lender to open on Britain’s high streets in over 100 years when it launched in the wake of the 2008 financial crisis.
Its branch-based model, which included gimmicks such…
