Metro Bank confirms takeover approach from US private equity group
Metro Bank has confirmed a takeover approach by private equity firm Carlyle, with the US group given a 2 December deadline to make a firm offer.
Metro says Carlyle has until December to confirm a bid
Metro announced it has “engaged” with the private equity firm about a potential takeover to take the bank private.
The London-based firm has not disclosed how much the buyout may be worth, but stressed the confirmation did not necessarily mean an offer would be made.
“A further announcement” on the approach will be made “as and when appropriate”, the bank states.
Metro’s share price jumped 37% on the back of the news, stemming a dip which has seen its value fall by more than 97% since March 2018.
Metro Bank is still recovering from an accounting scandal in 2019 which saw the resignation of its chair, Vernon Hill.
Current chief executive Dan Frumkin has steered the bank towards home loans and business debt to generate higher returns.
Metro sold £3 billion of mortgages – around 20% of its loan book – to NatWest in December 2020. In summer this year, Frumkin said the change in tactic was “beginning to bear fruit”.
Metro director of engineering and technology, Sailesh Panchal, announced his departure from the bank this week after two years in the role.
