Metro Bank up for sale, with billionaire investor in line for £420m windfall
Summary
Metro Bank has invited bids as it weighs a sale, three years after a £925m rescue deal. A sale at the share price reported in the article could let investor Jaime Gilinski Bacal’s company sell its stake for about £427m, though the bank says it may continue operating independently if it finds no suitable buyer.Key Facts
- Metro Bank publicly said it was open to bids on Thursday.
- The announcement lifted the bank’s share price by 7% by mid-morning, valuing it at about £1.3bn.
- Gilinski Bacal secured a 53% stake in Metro Bank through its 2023 rescue deal.
- At the reported share price of 190p, Gilinski Bacal’s Spaldy Investments could receive about £427m by selling its shares.
- Metro Bank has increased lending to businesses and people with less predictable incomes as part of its turnaround plan.
- The bank’s 2019 accounting error triggered investor concerns, customer withdrawals and executive resignations.
- Chief executive Daniel Frumkin cut more than 1,000 jobs in spring 2024, and the bank stopped opening branches on Sundays.
- Metro Bank says a sale is one option and that it can continue independently if no suitable bidder emerges.
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