The metro bank has received a takeover approach from private equity firm Parag Street Capital, in a step that can see a high road lender privately and intensify concerns about the shrinking rosters of companies listed on the London Stock Exchange.
The approach created within the previous fortnight, has not yet been a formal bid and is understood in the early stages of discussion. Parag Street, who owns a stake in Shobrook Bank with BC Partners, is known for investing its financial services and has long been quoted as a possible acquisition of the Metro Bank.
If successful, the deal would represent a dramatic turn for the metro, launched in 2010 with ambitions to disrupt British banking and became the first new high street bank to open over a century. It floated on LSE in 2016, reaching the market value of £ 3.5 billion at its peak – but today, including a harmful accounting scam in 2019, is close to £ 750 million after a series of failures.
The bank was rescued in 2023 through a complex refinning deal, with Colombian billionaire Jam Gilinsky Bakal 53 percent controlled stake. Since then, its share price has become dispersed, but it remains a part of its pre -evaluation.
Under the leadership of CEO Daniel Frumkin, the Metro is reproducing its business, focusing on retail -to -trade banking and consolidating 75 stores and about 3,455 employees to its physical footprint.
A successful bid by Parag Street will mark another chapter in the consolidation of UK Challenger banks. Shobrook itself is allegedly considering a stock market listing, although it can now detect expansion through the acquisition.
The news of the Metro Bank comes amid increasing concern about the declining appeal of the London Stock Exchange. More than 30 companies have either deliberated or planning to leave the exchange this year, many private equity as a result of or move to more favorable markets abroad.
A private buyer's possible sales of the metro bank will reduce the pressures faced by public Britain companies, with low assessment, tight regulatory investigation, and public equity to investors' hunger changes and private markets.
Neither the metro bank nor Parag Street Capital publicly commented on the report. However, the situation is closely viewed by regulators and investors, which is being seen as a bell of private equity interest in lowering assets listed or continuous private equity in the underwellude.
Jamie young
Jamie is a senior reporter in Business Matters, who is bringing more than a decade experience in UK SME business reporting. Jamie holds a degree in business administration and regularly participates in industry conferences and workshops. When not reporting the latest commercial developments, Jamie has emotional about advising journalists and entrepreneurs to motivate the next generation business leaders.