4th Nov 2021 11:53
(Alliance News) - Metro Bank PLC on Thursday said it has received a takeover approach from private equity firm Carlyle Group.
The challenger bank said that, while the approach does not constitute a formal offer, it has engaged with Carlyle.
Metro Bank shares were 43% higher at 147.00 pence each in London on Thursday morning, valuing the company around GBP250 million. However, the stock is some way off its March 2018 high of around 4,056p.
Since then, the high-street lender has faced a rocky period. UK regulators found an accounting error in its loan book at the start of 2019. In January of that year, the lender announced it had underestimated the risk on its commercial loans and needed to raise capital to compensate for the shortfall and, as a result, was forced to issue an update highlighting the increased risk.
Metro Bank was demoted from the FTSE 250 index in September 2019. It has not returned since. The company had listed in 2016.
In February of last year, Dan Frumkin was named Metro Bank's chief executive, having joined in September 2019 as chief transformation officer.
Carlyle has until December 2 to announce whether or not it plans to make an official offer for Metro Bank.
By Eric Cunha; [email protected]
Copyright 2021 Alliance News Limited. All Rights Reserved.
Related Shares:
Metro Bank