GlobalData
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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.
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.
Metro 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.
"Metro Bank receives takeover approach from Pollen Street " was originally created and published by Retail Banker International, a GlobalData owned brand.
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