8th Oct 2023 14:19
(Alliance News) - Metro Bank Holdings PLC is in talks for potential financing over the weekend and could potentially receive takeover interest, according to reports from the Times.
According to the Times, in recent weeks the embattled lender had received approaches about a potential tie-up from Shawbrook, a digital banking group owned by private equity.
Metro Bank is holding talks with bondholders and shareholders to secure fresh financing this weekend. Shawbrook is thought to be waiting for the outcome of these before deciding on whether to make a fresh approach about a takeover, the Times reported.
The newspaper also said that Metro Bank's advisers are thought to be exploring the potential for interest in a takeover from other parties.
https://www.thetimes.co.uk/article/metro-bank-share-price-trouble-what-went-wrong-f0sg3lq65
This comes amid media reports on Thursday that the Metro, a UK challenger bank, had begun to sell a GBP3 billion chunk of its mortgage book to shore up its finances.
The measures would form part of a wider capital raising plan, which Sky News had reported would include a GBP100 million equity raise and a refinancing of GBP350 million worth of debt which is due roughly this time next year.
The Financial Times had that Metro Bank's possible balance sheet boosting efforts would be worth GBP600 million, GBP250 million in equity funding and GBP350 million in debt.
On Thursday, Metro Bank said it "continues to consider how best to enhance its capital resources." In particular, it noted its GBP350 million senior non-preferred notes due in October 2025.
"The company is evaluating the merits of a range of options, including a combination of equity issuance, debt issuance and/or refinancing and asset sales. No decision has been made on whether to proceed with any of these options," it said.
Metro Bank shares closed up 10% at 41.36 pence on Friday in London, but had fallen 29% over the week.
By Elizabeth Winter, Alliance News senior markets reporter
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