All articles tagged with #metro bank
Originally Published 6 months ago — by Yahoo Finance
Colombian billionaire Jaime Gilinski Bacal, the majority shareholder of Metro Bank, is open to selling his 52.87% stake amid interest from private equity firms and potential merger opportunities, following a recent rebound in the bank's share price and a series of strategic options including a sale or growth through mergers.
Originally Published 2 years ago — by Reuters UK
Metro Bank, a British lender, has announced plans to cut costs by potentially laying off 20% of its staff and eliminating some customer perks, including seven-day opening hours. The bank aims to save up to £50 million ($63.45 million) annually through this cost reduction plan. Metro Bank's shares rose after the announcement, and the plan is expected to be completed by Q1 2024. The bank also plans to invest in automation, improve digital services, and streamline lending. Three board members will step down at the end of the year, leaving the board with five non-executive and two executive directors. Other UK banks, including Barclays and Lloyds, are also reviewing their staff costs.
Originally Published 2 years ago — by CNBC
Shares of UK's Metro Bank surged 26% after the lender announced it had secured a £325 million capital raise and £600 million in debt refinancing. The capital raise includes £150 million of new equity and £175 million of bail-in debt. Colombian banker Jaime Gilinski Bacal, an existing shareholder, led the raise and now holds a controlling 53% stake. The bank plans to shift towards specialist mortgages and commercial lending, while also exploring the sale of up to £3 billion of residential mortgages. The announcement follows concerns raised by regulators last month regarding the bank's internal risk models for mortgages.
Originally Published 2 years ago — by Reuters.com
Metro Bank, a British bank facing multiple setbacks in recent years, has secured a £325 million capital raise and a £600 million debt refinancing. Colombian billionaire Jaime Gilinski, the bank's largest investor, will take majority shareholder control. Bondholders will face a hit and switch to higher interest-paying bonds. The bank aims to strengthen its balance sheet after accounting errors, leadership departures, and delayed regulatory approval. The capital raise includes new equity and bail-in debt issuance. The deal also involves a restructuring of debts and discussions regarding the sale of residential mortgages.
Originally Published 2 years ago — by Reuters
The Prudential Regulation Authority (PRA) is reportedly working with Metro Bank to present a plan by Monday morning that would help the bank strengthen its balance sheet or find a buyer. The PRA has invited major UK lenders, including HSBC and Lloyds, to consider making an offer for Metro Bank. Shawbrook is also considering a potential bid for the bank. JPMorgan and Santander have reportedly explored the possibility of making offers as well. Metro Bank has been exploring options to raise up to £600 million ($734.28 million) through equity and debt injections and asset sales. The bank has not made a decision on its fundraising plans yet.
Originally Published 2 years ago — by Reuters.com
The Bank of England's Prudential Regulation Authority has approached several major UK lenders to gauge their interest in acquiring troubled British lender Metro Bank. JPMorgan and HSBC considered bids but ultimately decided against proceeding due to the additional capital requirements for a buyer. Metro Bank has recently rejected takeover approaches and is now in talks with bondholders about an equity injection and debt restructuring. The bank is hoping to secure new funds before the stock market opens on Monday. Metro Bank has faced various setbacks in recent years, including accounting errors and leadership departures.
Originally Published 2 years ago — by Reuters.com
Metro Bank, a British lender, has reportedly rejected a series of takeover approaches from specialist business lender Shawbrook. However, Metro Bank has held talks with bondholders about an equity injection alongside a debt restructuring. The proposal includes extending the maturity of outstanding senior debt and converting subordinated debt into equity. Shareholders would need to inject new equity to avoid dilution. The bank is aiming to thrash out a refinancing package totaling over £500 million ($611.90 million). Metro Bank's shares plunged earlier in the week, prompting discussions with shareholders to strengthen its capital levels.
Originally Published 2 years ago — by Reuters
Metro Bank shares plummeted over 25% after reports emerged that the UK lender is exploring options to raise up to £600 million ($728 million) in debt and equity to strengthen its finances. The bank's shares have already lost about two-thirds of their value since mid-February. Metro Bank's fundraising plans may include selling shares to raise over £100 million. The bank stated that it is considering various options but has not made a decision yet. Metro Bank has faced a series of setbacks since its 2016 stock market listing, including accounting errors, leadership departures, and delayed regulatory approval.
Originally Published 2 years ago — by CNBC
Shares of UK's Metro Bank were suspended multiple times after plunging over 25% in a volatile session, following reports that the bank was attempting to raise £600 million ($727 million) in debt and equity.