Shawbrook suitors step up chase with ‘stay public, go private’ option

Takeover suitors hoping to grab control of challenger bank Shawbrook on Friday tabled a fresh bid to win round hold-out shareholders.

Pollen Street Capital, which already owns 38.8% of Shawbrook, and private-equity firm BC Partners have offered 330p in cash plus a 2.7p dividend for each share, valuing the bank at £842.4 million.

The offer is similar to a bid tabled on March 6, which had won tacit backing from Shawbrook’s board but was shot down by some shareholders who wanted to keep hold of the bank.

To win them over, the duo said they will keep the company listed if between 50% and 75% back the deal. If more than 75% do so, it will go private.

Pollen Street’s Lindsey McMurray (pictured) said: “We believe the offer will provide liquidity to those investors that seek it and create an ownership structure comprising long-term, supportive investors that will allow the company to adopt a more flexible approach.”

Shawbrook’s board had forced the bid from 307p to 330p plus a divi and opened up the firm to due diligence.

But after getting feedback from shareholders, it decided not to recommend the offer. Shares leapt 10% to 334p on Friday.

Update: Shawbrook's board of directors on Friday recommended shareholders reject the bid.