The high street lender Metro Bank has been approached about a private equity-backed takeover in a move that could lead to the disappearance of another company from the London Stock Exchange.
Sky News has learnt that Metro Bank was approached in the last fortnight about an offer to take it private spearheaded by the financial services-focused buyout firm Pollen Street Capital.
Pollen Street is one of the major shareholders in Shawbrook, the mid-sized bank which in the past has approached Metro Bank about a merger of the two companies.
In recent months, Shawbrook’s owners have stepped up efforts to identify a prospective corporate combination, holding tentative talks with Starling Bank about a £5bn tie-up, while also drawing up plans for a stock market listing.
The takeover approach to Metro Bank comes as it puts a traumatic period in which it came close to insolvency firmly behind it.
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It appears to me Shawbrook’s investors have grown tired with notion of trying to grow their own business and are now trying to acquire to shortcut themselves to the size they need to be to exit via IPO.
I’m less than convinced that the strategy will yield in the way they are imagining.
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