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In a recent development in the UK banking sector, Metro Bank has firmly declined a series of takeover proposals from Shawbrook, a specialist business lender. These proposals, including one submitted in late September, were promptly dismissed, as reported by Sky News.
Status of Ongoing Discussions Unclear
While this news has made waves, the precise status of any ongoing discussions between Metro Bank and Shawbrook remains uncertain. Furthermore, the report does not provide information on the valuation of Shawbrook’s proposals.
Board Meeting to Finalize £500 Million Refinancing Package
On the horizon, Metro Bank’s board is scheduled to meet with a group of bondholders this Saturday. Their primary objective is to conclude negotiations on a refinancing package that exceeds £500 million ($611.90 million). The bank intends to make this crucial announcement before the stock market opens on Monday.
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Silent Responses from Metro Bank and Shawbrook
Despite the significance of these developments, Metro Bank has chosen not to comment on the matter. Additionally, Shawbrook has remained unresponsive to Reuters’ request for a comment regarding the report.
In a related development, Reuters reported on Friday that Metro Bank has slated discussions with its shareholders over the weekend. This strategic move is aimed at fortifying the bank’s financial stability and reassuring regulators, particularly following a tumultuous week of trading.
On Thursday, the mid-sized British lender experienced a noteworthy decline in its share value. This drop followed reports indicating the bank’s intention to raise up to £600 million to bolster its capital reserves.
Shawbrook’s Specialized Lending Focus
Based in London, Shawbrook specializes in lending to real estate professionals, small and medium-sized enterprises (SMEs), and consumers. Impressively, the lender maintains a substantial loan portfolio valued at £10.5 billion, as disclosed on its official website.
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