Shawbrook bidders lift offer for challenger bank to £868m

The private equity firms stalking Shawbrook have raised their offer for the challenger bank by £26m to £868m and declared their hostile bid “final” in a last-ditch attempt to convince shareholders to take the deal.

Pollen Street Capital, which owned Shawbrook before floating it on the stock market two years ago, and BC Partners have lifted their offer for Shawbrook by 10p a share to 340p, plus a 2.7p dividend the bank announced in March.  

It comes after the pair only managed to receive acceptances for their earlier 330p-plus-dividend bid from shareholders speaking for 6.6pc of the lender’s stock.

Together with Pollen Street’s 38.8pc stake it takes the acceptance level to 45.4pc, short of the 50pc threshold the bidders need to cross to take control of Shawbrook. If the suitors receive 75pc backing or more, the bank will be de-listed.

Shawbrook, which is led by chief executive Steve Pateman, had urged investors to reject the 330p bid, prompting the private equity houses to go hostile and take the deal directly to shareholders. The bank’s board did not comment on the new offer, which remains open until 1pm on June 19.

“After carefully considering market feedback we are pleased to be able to make an improved best and final offer, which we consider offers shareholders an attractive premium and compelling value,” Lindsey McMurray of Pollen Street and Cédric Dubourdieu of BC Partners said.