UK challenger lender Metro Bank has received a bid, understood to be led by private equity firm Pollen Street Capital, that could see the bank delisted from the London Stock Exchange, according to a report by Sky News.
The potential transaction comes amid renewed consolidation efforts in the UK banking sector. Pollen Street is also a significant backer of Shawbrook Bank, which has previously explored a merger with Metro.
Shawbrook’s owners have reportedly engaged in exploratory discussions with Starling Bank over a potential £5bn merger, while simultaneously evaluating IPO options.
Metro Bank’s recovery trajectory has accelerated following a £925m recapitalisation in late 2023, comprising £325m in new equity and £600m of fresh debt. The equity raise was led by Colombian billionaire Jaime Gilinski Bacal, who now holds a controlling 53% stake via Spaldy Investments and serves on the bank’s board.
Since the deal, Metro has undertaken a major restructuring, including headcount reductions and loan portfolio sales, while CEO Daniel Frumkin has focused on margin improvement and asset mix optimisation.
Metro Bank’s shares have surged more than 200% over the past year, closing at 112.2p on Friday, valuing the bank at approximately £750m – a sharp contrast to its 2018 peak market cap of £3.5bn.
Founded in 2009, Metro Bank was the UK’s first new high street bank in over a century. Despite early fanfare, its branch-heavy, customer-centric model has struggled amid digital transformation across the sector.
