Title: Metro Bank Rejects Takeover Offers Amidst Ongoing Financial Struggles
In a recent development, Metro Bank, a prominent British lender, has rejected a series of takeover attempts from Shawbrook, a specialist business lender. The specific details of Shawbrook’s offers and the ongoing discussions between the two companies remain unclear.
Metro Bank has been engaged in talks with bondholders regarding an equity injection, alongside a debt restructuring. As part of the proposed plan, the maturity of outstanding senior debt would be extended, and subordinated debt would be converted into equity. However, shareholders would be required to inject new equity to avoid significant dilution.
To negotiate a refinancing package worth over £500 million, a meeting with bondholders has been scheduled. Under this package, Metro Bank’s tier 2 notes would be converted into equity, while the maturity of senior bonds set to mature in 2025 would be extended. Despite these developments, both Metro Bank and Shawbrook have declined to comment on the reports.
Notably, Metro Bank’s largest shareholder, Colombian billionaire Jaime Gilinski, is yet to respond to requests for comment. The rejection of Shawbrook’s takeover attempts comes amidst Metro Bank’s efforts to shore up its finances and address concerns raised by regulators following a volatile week of trading.
Shawbrook, on the other hand, is a specialist lender catering to real estate professionals, small and medium-sized enterprises (SMEs), and consumers. With a loan book valued at £10.5 billion, the lender has established itself as a key player in the industry.
However, these recent events have taken a toll on Metro Bank’s shares. Following reports of its efforts to raise £600 million to strengthen its capital levels, the bank’s share prices have significantly plummeted.
Metro Bank’s decision to reject Shawbrook’s takeover attempts highlights its determination to navigate the challenges it currently faces independently. As it seeks to bolster its financial position and reassure regulators, investors and industry experts eagerly await further updates on Metro Bank’s progress in the coming weeks.
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