- Metro Bank seeks financing.
- Rejected takeover offer discussed.
- Troubled history with regulators.
Bondholders and Metro Bank’s board will meet on Saturday to discuss a financing package, possibly disclosed before Monday’s stock market opening.
Last month, Metro Bank’s board rejected a rival British lender’s secret merger approach, lowering its stock price as it sought millions to strengthen its finances.
Shawbrook has presented multiple bid proposals to Bank, including one in late September.
It bondholders and executives will discuss a financing package exceeding £500 million.
Analysts suggest that if alternative proposals fail, Metro Bank may consider selling the company.
City sources reported that Metro Bank declined recent overtures from Shawbrook.
The board’s decision not to engage in negotiations may be questioned, given the emergence of a credible buyer.
“Start your investing journey with a gift! Claim your free Webull shares.”
Shawbrook is also competing for the Co-operative Bank, currently for sale.
Metro Bank’s share price plummeted approximately 30% recently, prompting efforts to sell new shares and refinance a £350 million bond.
On Friday, the stock closed at 45.25p, marking a 20% increase.
It is advised by Moelis, Morgan Stanley, and Royal Bank of Canada, aimed to generate at least £100 million through share transfers, but this plan’s feasibility is uncertain.
PJT Partners is advising bondholders on their proposals.
Negotiations will begin on Saturday and continue all weekend.
Shawbrook’s approach to Metro followed the bank’s denied application to transition to a capital-light model.
Metro Bank, established in 2010, is among the UK’s ten largest banks, serving 2.7 million customers through 75 branches.
The Treasury and regulators closely monitor Metro Bank’s capital-raising efforts amid deposit withdrawal concerns.
Metro Bank has had a troubled history with regulators, facing fines for disseminating inaccurate information to investors.
Founded in 2009 by Anthony Thompson and Vernon Hill, Metro Bank will sell a portfolio of owner-occupied residential mortgages to NatWest Group for up to £3.1 billion.
