Metro Bank has put itself up for sale, three years after a period of near-collapse. The bank made a public announcement on Thursday, stating it is open to bids from potential suitors.
Following the announcement, Metro Bank's share price increased by 7% by mid-morning, valuing the bank at around £1.3bn. A successful sale could result in a £420m windfall for Colombian billionaire investor Jaime Gilinski Bacal, who helped rescue the bank in late 2023.
Gilinski Bacal secured a 53% stake three years ago as part of a rescue deal, buying shares at 30p each. At Thursday's share price of 190p, his shares, held through Spaldy Investments, could yield a £427m windfall. Metro Bank's board stated that evaluating potential interest through a sale is believed to maximise value for shareholders and benefit all stakeholders.
The bank has been implementing a turnaround plan since a £925m rescue deal in 2023, which involved lending more to businesses and individuals with more erratic incomes. This plan has led to increased profits but also involved slashing over 1,000 jobs in spring 2024 and closing branches on Sundays.