Metro Bank has received a takeover approach from private equity firm Pollen Street Capital, in a move that may see the high street lender taken private and intensify concerns about the shrinking roster of companies listed on the London Stock Exchange.
The approach, made within the past fortnight, has not yet resulted in a formal bid and is understood to be in the early stages of discussion. Pollen Street, which owns a stake in Shawbrook Bank along with BC Partners, is known for its financial services investments and has long been cited as a potential acquirer of Metro Bank.
If successful, the deal would represent a dramatic turn for Metro, which launched in 2010 with ambitions to disrupt British banking and became the first new high street bank to open in over a century. It floated on the LSE in 2016, reaching a market value of £3.5 billion at its peak — but is today worth closer to £750 million following a series of setbacks, including a damaging accounting scandal in 2019.
The bank was rescued from near-collapse in 2023 through a complex refinancing deal that handed a 53 per cent controlling stake to Colombian billionaire Jaime Gilinski Bacal. Since then, its share price has trebled, but it remains a fraction of its former valuation.
Led by CEO Daniel Frumkin, Metro has been repositioning its business, shifting focus from retail to business banking and consolidating its physical footprint to 75 stores and around 3,455 employees.
Support authors and subscribe to content
This is premium stuff. Subscribe to read the entire article.
