According to a report by Sky News, Metro Bank, a British lender, has rejected multiple takeover approaches from specialist business lender Shawbrook. The latest approach was made in September, but it is unclear whether any ongoing discussions are taking place between the two companies. The valuation of Shawbrook’s offers has not been disclosed. Metro Bank’s board is set to meet with bondholders to discuss a refinancing package totaling over £500 million ($611.90 million) before announcing it on Monday.
The rejection of takeover approaches from Shawbrook comes as Metro Bank seeks to strengthen its finances and assure regulators after a volatile week of trading. Metro Bank’s shares plummeted following reports that the lender is trying to raise £600 million to bolster its capital levels. Meanwhile, Shawbrook, a London-based specialist lender, serves real estate professionals, SMEs, and consumers, with a loan book of £10.5 billion.
As both Metro Bank and Shawbrook remain tight-lipped about the report, it remains to be seen what the future holds for their potential merger or acquisition. Metro Bank’s focus will be on engaging with bondholders to secure the necessary refinancing package to stabilize its capital position. Investors and industry analysts will be closely monitoring the development, as it could have significant implications for the British banking sector.
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