Shawbrook Bank rejects £825m takeover offer

Shawbrook Bank have rejected a £825m takeover offer, it revealed today in its end of year results.

Related topics:  Finance News
Amy Loddington
7th March 2017
Shawbrook

The bid, which was proposed by the bank's biggest shareholder, private equity firm Pollen Street Capital, was priced at 330p per share.

However, Shawbrook revealed that it has rejected the proposal after taking into account the terms of the potential offer, the board’s confidence in the group’s strategy and feedback from Shawbrook’s major institutional shareholders.

The specialist lending and savings bank today announces continued strong performance and reiterates confidence in its near and medium term outlook, supported by its disciplines on risk, returns and costs to create resilience, durability and sustainability.

Commenting on the end of year results, CEO Steve Pateman said:

“2016 was a pivotal year for Shawbrook – we clearly articulated our 2020 vision at our inaugural Capital Markets Day in May 2016 and have continued to deliver against the strategic pillars we set out. We have achieved sustainable growth across all of our lending divisions and delivered strong risk adjusted returns. Notwithstanding the changes in the political environment and the subsequent uncertainty arising in the macroeconomic climate, we have continued to execute our plans through deep market knowledge, innovation and through close understanding and awareness of our customers’ needs.

"Shawbrook’s journey since listing has been somewhat more challenging than anticipated due to the changes in the macroeconomic climate and outlook and the identification of the controls breach in the Business Finance Division announced on 28 June 20161. However, Shawbrook today has a strengthened management team and sound foundations, making it well placed to take advantage of the opportunities that will continue to arise from the structural changes taking place in the UK banking market. Our disciplines on risk, returns, costs, liquidity and capital are clear and as we move forward, our guiding principles will be quality rather than quantity which, combined with practical banking and good sense, will create resilience, durability and sustainability.”

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