Metro Bank faces takeover interest

(MENAFN) Metro Bank, a prominent high street lender, has received a takeover approach as its previous financial struggles fade into the past. One of the major shareholders in Shawbrook, Pollen Street, is involved in this development. Shawbrook, a mid-sized bank, has previously explored merger possibilities with Metro Bank.

Recently, Shawbrook’s owners have intensified their search for potential corporate partnerships, including preliminary talks with Starling Bank about a possible about $6.655 billion merger, alongside plans for a stock market listing.

Metro Bank’s takeover interest arrives after a turbulent period during which the bank narrowly avoided insolvency. In November 2023, it was saved by a $1.256 billion rescue package featuring about $441.6 million in equity—of which Colombian billionaire Jaime Gilinski Bacal contributed a third—and $815.1 million in fresh debt.

Gilinski now holds nearly 53% of Metro Bank through his investment firm Spaldy Investments and is a member of the board. Since the bailout, Metro Bank has cut hundreds of jobs and sold loan portfolios while CEO Daniel Frumkin has enhanced operational performance. The bank’s shares have more than tripled over the past year, reflecting its accelerating recovery.

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