London-based high street lender Metro Bank has received a takeover approach from private equity firm Pollen Street Capital, which could lead to the company’s disappearance from the London Stock Exchange. The offer is aimed at taking the bank private, and its significance comes as Metro Bank continues to recover from a tumultuous period in 2023.
In November 2023, the lender was rescued with a £925m deal that included £325m of equity contributed by Colombian billionaire Jaime Gilinski Bacal. Since then, Metro Bank has cut hundreds of jobs and sold loan assets while improving its operating performance under CEO Daniel Frumkin.
Shares in Metro Bank have more than tripled in the last year, and the stock closed at 112.2p on Friday, giving it a market capitalisation of just over £750m. The company’s recovery has been driven by its branch-based model, which includes offering services such as relationship banking and corporate lending.
However, Metro Bank’s history with City regulators has not been without issues. The lender was fined £10m by the Financial Conduct Authority in 2022 for publishing incorrect information to investors, while it also received a £5.4m penalty from the PRA last year. Despite these challenges, Metro Bank has made progress in recent months, including seeing growth in its corporate and commercial lending.
Pollen Street Capital’s takeover bid could have significant implications for Metro Bank’s future, particularly given the lender’s relatively small market capitalisation compared to other high street banks. The company’s history and regulatory issues make it a complex case, but one thing is clear: Metro Bank’s recovery efforts will continue to be closely watched by investors and regulators alike.
Source: https://news.sky.com/story/high-street-lender-metro-bank-receives-takeover-approach-13383562