Latest news with #JaimeGilinskiBacal
The Guardian
3 hours ago
- Business
- The Guardian
Metro Bank sobers up and attracts a suitor
Some departures from the shrinking London stock market hurt more than others. It is doubtful that Metro Bank, if it's about to fall to an approach from a London private equity firm, will be mourned by those shareholders on the wrong end of the wild ride for the shares from £20 at listing in 2016, to £40 two years later, to a plunge and painful recapitalisation at just 30p in 2023. In the overhyped early years, Metro said it was going to revolutionise high street banking via the novel strategy of opening expensive branches while the fuddy-duddy old guard were closing them. The party ended in an arduous tale of an accounting blunder, run-ins with regulators and a need for more capital, factors that inevitably weighed more heavily than the bank's gimmicks such as giving free dog biscuits to the customers' canines. But – surprise, surprise – Metro these days is not an enfeebled lender waiting to be put out of its misery. In recapitalised and less flashy form for the last couple of years, it has been making quiet progress from its lowered horizons. The branches have been kept, but costs have been taken out, most of the loan-book has been redirected towards small businesses and the number of accounts has grown. Profits appeared again at the end of last year. If you caught the bottom for the shares in 2023's rescue deal, as Colombian billionaire Jaime Gilinski Bacal did by topping up his stake to 53%, you did well. Even before potential takeover interest from Pollen Street Capital, as reported by Sky News at the weekend, the shares had improved to 112p. It is why Metro doesn't necessarily need to throw itself into the arms of Pollen Street at any price. The would-be bidder's reported interest is probably motivated by thoughts of a second deal to combine Metro and Shawbrook, the business-focused lender that Pollen Street owns with fellow private equity outfit BC Partners. It's true that a combination would have financial logic on its side. Metro would bring cheap funding from a sticky deposit base of current accounts; Shawbrook has a faster-growing loan book across buy-to-let mortgages, commercial property and small businesses. 'The value for Shawbrook in maintaining asset growth momentum at the same time as reducing deposit costs is potentially significant,' argue analysts at KBW. As they also say, a deal hinges on two factors. First, whether Metro's management and shareholders – critically, Gilinski – want to head to the exit at a point when the reinvention of their bank is supposed to have several more laps to run. Second, the price Pollen Street would be prepared to offer. But the market clearly expects a deal: Metro's shares rose 18% to 133p, giving a £890m valuation. It makes you wonder what might have been if Metro, version one, hadn't attempted an all-conquering retail strategy that took it to the brink of collapse and a near-quadrupling of the share count. Version two – sober, better capitalised and with small businesses as the target for lending – has been vastly better.
Yahoo
6 hours ago
- Business
- Yahoo
Metro Bank shares soar as investors welcome possible takeover approach
Shares in Metro Bank (MTRO.L) have jumped by more than a 10th as investors welcome reports that the high street lender had attracted a takeover approach from a possible buyer. The London-listed bank was approached by investment firm Pollen Street Capital about potentially taking it private, Sky News first reported over the weekend. The discussions are said to be in the early stages and there can be no certainty of any deal. This would mark a turning point for the lender which secured a multimillion-pound rescue deal in 2023 and returned to profitability last year. Shortly after markets opened on Monday, Metro shares were soaring by about 13%. Metro Bank declined to comment on the takeover reports. The bank has emerged from a tumultuous period where it suffered sharp drops in its share price, before receiving a funding package worth £925 million to help secure its future on Britain's high streets. Colombian billionaire Jaime Gilinski Bacal became a majority shareholder in the group after contributing through his firm Spaldy Investments. The lender has made heavy cuts to its cost base, including reducing its workforce by about 30%. It now has about 3,000 employees nationwide. It also scrapped its seven-day-a-week opening hours across its branches – once a central feature of the banking group – which, in 2010, was the first high street bank to launch in the UK in more than 100 years. Metro runs 75 stores in the UK and is opening new branches in Chester and Gateshead in the summer. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
7 hours ago
- Business
- Yahoo
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. 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. The information on this site has been included in good faith for general informational purposes only. It is not intended to amount to advice on which you should rely, and we give no representation, warranty or guarantee, whether express or implied as to its accuracy or completeness. You must obtain professional or specialist advice before taking, or refraining from, any action on the basis of the content on our site.
Yahoo
11 hours ago
- Business
- Yahoo
Metro Bank shares soar as investors welcome possible takeover approach
Shares in Metro Bank (MTRO.L) have jumped by more than a 10th as investors welcome reports that the high street lender had attracted a takeover approach from a possible buyer. The London-listed bank was approached by investment firm Pollen Street Capital about potentially taking it private, Sky News first reported over the weekend. The discussions are said to be in the early stages and there can be no certainty of any deal. This would mark a turning point for the lender which secured a multimillion-pound rescue deal in 2023 and returned to profitability last year. Shortly after markets opened on Monday, Metro shares were soaring by about 13%. Metro Bank declined to comment on the takeover reports. The bank has emerged from a tumultuous period where it suffered sharp drops in its share price, before receiving a funding package worth £925 million to help secure its future on Britain's high streets. Colombian billionaire Jaime Gilinski Bacal became a majority shareholder in the group after contributing through his firm Spaldy Investments. The lender has made heavy cuts to its cost base, including reducing its workforce by about 30%. It now has about 3,000 employees nationwide. It also scrapped its seven-day-a-week opening hours across its branches – once a central feature of the banking group – which, in 2010, was the first high street bank to launch in the UK in more than 100 years. Metro runs 75 stores in the UK and is opening new branches in Chester and Gateshead in the summer.
The Independent
12 hours ago
- Business
- The Independent
Metro Bank shares soar as investors welcome possible takeover approach
Shares in Metro Bank have jumped by more than a 10th as investors welcome reports that the high street lender had attracted a takeover approach from a possible buyer. The London-listed bank was approached by investment firm Pollen Street Capital about potentially taking it private, Sky News first reported over the weekend. The discussions are said to be in the early stages and there can be no certainty of any deal. This would mark a turning point for the lender which secured a multimillion-pound rescue deal in 2023 and returned to profitability last year. Shortly after markets opened on Monday, Metro shares were soaring by about 13%. Metro Bank declined to comment on the takeover reports. The bank has emerged from a tumultuous period where it suffered sharp drops in its share price, before receiving a funding package worth £925 million to help secure its future on Britain's high streets. Colombian billionaire Jaime Gilinski Bacal became a majority shareholder in the group after contributing through his firm Spaldy Investments. The lender has made heavy cuts to its cost base, including reducing its workforce by about 30%. It now has about 3,000 employees nationwide. It also scrapped its seven-day-a-week opening hours across its branches – once a central feature of the banking group – which, in 2010, was the first high street bank to launch in the UK in more than 100 years. Metro runs 75 stores in the UK and is opening new branches in Chester and Gateshead in the summer.
