Shawbrook board rejects joint Pollen Street, BC offer

The bank's board made the statement as part of the announcement of Shawbrook's 2016 results, citing its confidence in its strategy.

Pollen Street and BC Partners made a joint offer for the listed bank on 3 March, offering 330 pence per share and valuing the business at £825m. Shares were trading at 317 pence on the morning of 7 March.

The two private equity investors had already made an offer for Shawbrook in January, based on a 307 pence share price, which was rejected by the board at the time. They will now have until the end of March to make a revised offer or abandon their plans, under the UK Takeover Code.

Marlin Bidco, the holding making the offer, issued a statement noting the board's decision but expressed surprise, as it felt the offer "represents an attractive premium for shareholders and given the friendly and open nature of its discussions with Shawbrook".

Pollen Street Capital – then known as Special Opportunities Fund – first invested in Shawbrook in 2011, which was known as Whiteaway Laidlaw Bank at the time.

Shawbrook listed in London in April 2015; its IPO gave it a market cap of £725m. The listing saw shares priced at 290 pence apiece, raising gross proceeds of £90m for the company. Following admission, Pollen Street remained Shawbrook's largest shareholder with a 59% stake. The GP currently owns 38.8% of the bank.

Shawbrook is a lending and savings bank for SMEs. The business provides commercial mortgages, asset finance, business credit, secured lending and consumer lending. In its 2016 results, Shawbrook announced a 14% increase in profit before tax to £91.4m.

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• Topics
• UK / Ireland
• Financials
• Buyouts
• Take Private
• BC Partners
• United Kingdom