- Redwood Bank’s Listing Plans
- Jonathan Rowland’s Reverse Takeover
- UK Banking Sector Consolidation Expected
Following co-founder Jonathan Rowland’s reverse takeover of R8 Capital Investments, Redwood Bank is set to be listed on the London Stock Exchange.
Jonathan Rowland, a prominent financier and co-founder of the challenger bank six years ago, is orchestrating a merger between Redwood Bank, a business lender, and R8 Capital Investments, a family-owned business.
Redwood Bank was expected to announce its reverse acquisition of R8 on Monday morning. It aims to raise around £20 million in new capital from investors to support its future growth.
Previously known as Mode, R8 traded as a cryptocurrency venture but was effectively wound down earlier this year.
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Mr. Rowland wants R8 to publicise Redwood Bank and add lenders and loan books to become a full-service bank.
Timing seems favorable, given the expected consolidation in the UK banking sector, driven by higher interest rates. Over the past year, ownership speculation has surrounded the Co-operative Bank, Sainsbury’s Bank, Shawbrook, and Tesco Bank.
R8 is currently valued at just over £2 million in the market.
Redwood Financial Partners investors will own a majority position in the London-listed company after Redwood’s reverse takeover.
Redwood Bank was the first collaboration between the Rowland Family and prominent investors like David Bonderman, co-founder of TPG and former chairman of Ryanair Holdings. Initially, Redwood and Mode were part of the same company but separated in 2017 before the bank’s licensing.
Mr. Rowland, son of the significant Conservative Party donor David ‘Spotty’ Rowland, played a pivotal role in transforming the Icelandic-owned Kaupthing Bank Luxembourg into the global private bank Banque Havilland after the 2008 banking crisis.
