Shawbrook Bank

Shawbrook shares climb after receiving new takeover offer

Shawbrook Bank share prices have surged after receiving a firm takeover offer.

On Friday (31st March), Marlin Bidco – a company jointly owned by funds managed or advised by Pollen Street and BC Partners – announced an offer to acquire the entire issued and to be issued ordinary share capital of Shawbrook.

However, the bank’s board revealed it was not able to recommend the offer after noting that the offer price had not changed from the proposed terms that were rejected by Shawbrook earlier this month.

This decision came despite the board acknowledging a change in transaction structure from a scheme of arrangement to a takeover offer with an acceptance condition of 50% plus one share.

The news saw Shawbrook share prices climb by 9.8% from 304.3p at close on 30th March to 334.02p at 10am on 31st March.

Commenting on the offer prior to Shawbrook’s rejection, Lindsey McMurray, Pollen Street’s representative director on the board of Shawbrook, said: "We have been a supportive shareholder of Shawbrook since it was founded in 2011, and through the offer will continue to be invested for years to come.

“We believe that 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 to changing market dynamics.

“We look forward to working with the Shawbrook management team and BC Partners to build on the company's strong foundations as a specialist lender."

Funds managed or advised by Pollen Street currently hold approximately 38.9% of the issued share capital of Shawbrook, having first invested in 2011.

Lindsey McMurray had not been involved in the board’s consideration of the offer.

Shawbrook’s board said it would in due course be communicating with shareholders to set out its views in more detail, having recommended that shareholders reject the offer.

The board is being advised by BofA Merrill Lynch and Goldman Sachs International in respect of the offer.

Disclaimer: The above image is a stock photo and not indicative of Shawbrook's actual share price.

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