Challenger bank Shawbrook rejected a ‘final’ takeover bid

Canary Wharf and the city are seen at sunset in London, December 14, 2016. REUTERS/Eddie Keogh
Canary Wharf,

Reuters / Eddie

LONDON — Challenger bank Shawbrook rejected a fourth and “final”
£868 million ($1.12 billion) takeover bid from a private equity
consortium on Tuesday morning.

The bank was subject to a multi-million pound bid from Pollen
Capital and BC Capital, after its directors said the deal
undervalued the lender. Pollen already has a 40% stake in the

It is the third offer from the consortium, which operates under
the name of BC Capital’s Martin Bidco, that the bank has rebuffed
this year.

A note to
shareholders said: “The independent directors have considered the
terms of the final offer with their advisers and have taken into
account feedback received from shareholders. The independent
directors believe that the final offer undervalues Shawbrook and
its prospects.”

“The independent directors believe Shawbrook can continue to grow
prudently over the medium term.”

Shawbrook is a specialist lender set up take on Britain’s biggest
banks. It was
on the London Stock Exchange in April 2015 at 290p a
share, valuing the bank at £725 million.

The offer will remain open for acceptance until June 19, but the
directors have urged shareholders to “take no action with regards
to the final offer.”

Shares in the London-listed bank dipped around 0.3% in early
hours trading. Here is the chart at 9.20 a.m. BST (4.20 a.m. ET):

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