Metro Bank is seeking buyers three years after its near-collapse, in a move that could deliver a £420m windfall to its Colombian billionaire investor, Jaime Gilinski Bacal. The bank made the rare decision to publicly announce on Thursday that it was open to bids, pushing its share price up 7% by mid-morning and valuing the lender at about £1.3bn. The sale would allow Gilinski Bacal, who took a 53% stake in the bank during a £925m rescue deal in 2023, to exit the investment he helped secure from near-failure.
Gilinski Bacal, one of the wealthiest people in Latin America with a net worth of about £12.7bn according to Forbes, has already seen a sixfold increase in the value of his shares. He bought them for 30p each as part of the wider rescue package, and at Thursday's 190p share price, his British Virgin Island-based vehicle Spaldy Investments could cash out with a £427m windfall. The 68-year-old banking tycoon has built his fortune by acquiring assets of struggling lenders cheaply, overhauling their operations and then selling them for substantial profits.
Metro was the first high street bank to open in the UK in more than 100 years when launched by US businessman Vernon Hill in 2010. It initially attracted customers with dog-friendly branches and seven-day openings, but its fortunes deteriorated sharply after a major accounting blunder in 2019 that prompted investors to sell shares and worried customers to withdraw cash. The scandal led to the resignations of top executives and Hill himself, who was known for bringing his yorkshire terrier Sir Duffy into branches.
The bank's shares plunged again in 2023 after regulators determined it could not be trusted to assess its own risks. The rescue, brokered in part by the Bank of England, secured the £925m package and led to a turnaround plan involving heavier lending to businesses and people with more erratic incomes. Chief executive Daniel Frumkin slashed more than 1,000 jobs in spring 2024 and closed branches on Sundays, measures that increased profits but cost staff and customers.
Metro's board said on Thursday that a sale was one option under consideration and that the bank would remain capable of continuing independently if no suitable bidder emerged. The board stated it "unanimously believes" that exploring potential buyer interest "will maximise the value creation opportunities available to shareholders and deliver benefits for all stakeholders".