Metro Bank’s Plot Twist: Pollen Street’s Bid Could Rewrite the UK Banking Script

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UK high street challenger bank Metro Bank has been the target of a takeover approach by private equity firm Pollen Street Capital, Sky News uncovered on June 14, 2025. The approach, made in the last two weeks, would take Metro Bank private and possibly off the London Stock Exchange, the latest high-profile exit from the UK equity market.

Pollen Street Capital, a major shareholder in mid-market lender Shawbrook, previously looked at possible merger transactions with Metro Bank. Shawbrook itself has been involved in seeking corporate mergers, including initial talks with Starling Bank for a £5 billion merger and for a stock market listing. The recent advances to Metro Bank are part of Pollen Street's plan of consolidation of financial services stakes.

Metro Bank has experienced a turbulent recent history. It teetered on the brink of insolvency in November 2023 on the terms of a £925 million bailout agreement, £325 million of which was in the form of equity—a third of which was contributed by Colombian billionaire Jaime Gilinski Bacal, the bank's current majority shareholder with a near 53% stake. Metro Bank has since embarked on wholesale restructuring, such as hundreds of job cuts and the sale of loan books, as well as CEO Daniel Frumkin focusing on operational performance.

Even after a year in which its shares have more than tripled, Metro Bank's market value remains a fraction above £750 million, a far cry from its 2018 peak of £3.5 billion. Metro Bank operates around 75 branches and has seen an increase in corporate and commercial lending but remains to grapple in a digital age. The potential delisting and takeover of Metro Bank are coming as part of broader issues around the attractiveness of the London Stock Exchange to British businesses, as companies increasingly delist or move their main listings abroad.

No announcement has been made yet from Metro Bank or Pollen Street Capital on the takeover bid.

Key Highlights:

Metro Bank targeted by private equity firm Pollen Street Capital for takeover bid.
Pollen Street is a significant shareholder in Shawbrook, which had earlier contemplated a merger with Metro Bank.
The transaction would take Metro Bank into private and delisted status on the London Stock Exchange.
Metro Bank saved from collapse in Nov 2023 with £925m bailout, Colombian billionaire Jaime Gilinski Bacal now in charge in a majority.
After the bailout, Metro Bank cut staff, sold loan books, and improved operating performance under CEO Daniel Frumkin.
Stocks have doubled in the last year but market cap remains below 2018 peak (£750m vs £3.5bn).
Metro Bank operates about 75 branches and has expanded corporate lending despite adversity.

The potential delisting reflects wider trends of UK businesses leaving the London Stock Exchange in the face of global competition.

Source: Sky News