Shawbrook Bank has rejected an £825m takeover bid from majority shareholder, private equity firm Pollen Street Capital.
The offer was made on Friday at 330p per share, but it’s thought Pollen would need to up to ante to 350p for Shawbrook to sell.
Shawbrook said in a statement: “Taking into account the terms of the revised proposal, the confidence the Board has in Shawbrook’s strategy and plan and the feedback from Shawbrook’s major institutional shareholders, the board has concluded that it is not willing to recommend the consortium’s revised proposal. The revised proposal has therefore been rejected by the Board.
“The board remains very confident in Shawbrook’s strategy as a publicly listed company, as outlined in the Capital Markets Day in May 2016, and in the ability of its current management team to deliver its plan, and is clear that its successful delivery and growth trajectory would generate significant shareholder value over the period to 2020.”
The group announced its yearly results for 2016, with the group increasing profit before tax by 14% to £91.4m.
It also increased its loan book by 22% to £4.1bn.