Metro Bank receives takeover approach from Pollen Street
Retail and commercial bank, Metro Bank has been approached informally by private equity group, Pollen Street Capital regarding a potential takeover, reported Sky News.
Currently, Metro Bank holds a market valuation of about £750m and has been considered a target for acquisition after enduring a series of challenges as a publicly listed company.
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The outcome of the talks remains uncertain as the talks are in early stages, as per Financial Times.
The UK-based bank marked its entry into the UK banking sector in 2010 and went public in 2016 with a £1.6bn valuation.
In 2019, Metro Bank faced a setback with the misclassification of certain commercial loans, which led to a shortfall in capital.
This prompted a £350m share issue and attracted scrutiny from the UK’s regulators Financial Conduct Authority and the Prudential Regulation Authority.
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By GlobalDataMetro Bank’s challenges persisted into 2023, as it was compelled to raise emergency capital following a steep decline in its share value, triggered by the non-approval of a capital requirement adjustment for its mortgage portfolio by regulators.
This financial strain led to the rejection of an earlier bid from a specialist lender in the same year.
The bank was eventually stabilised through a £925m rescue deal in November 2023, consisting of £325m in equity—of which Colombian billionaire Jaime Gilinski Bacal provided a third—and £600m in new debt.
Gilinski’s investment firm, Spaldy Investments, now controls a near-53% stake in Metro Bank, and he remains on the board, stated Sky News.
Furthermore, in February, Metro Bank divested its unsecured personal loan portfolio, valued at £584m.
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