By Lars Mucklejohn
Barclays is reportedly in exclusive talks to buy a £3bn residential mortgage book from Metro Bank as the troubled lender’s shareholders prepare to vote on a £925m refinancing package later today.
The negotiations were reported by Sky News.
Metro Bank’s shareholders are widely expected to join bondholders in approving a £925m refinancing plan to shore up the bank’s balance sheet later today.
Shares have surged nearly 10 per cent today ahead of the vote but remain down by almost two thirds in the year to date and 98 per cent over the last five years.
The bank is the second most shorted stock on the London market, according to the Financial Conduct Authority.
The refinancing package includes a £325m capital raise led by existing shareholder Spaldy Investments and £600m of debt refinancing.
Spaldy Investments – led by Colombian billionaire Jaime Gilinski Bacal – is Metro Bank’s controlling shareholder, with a stake of around 53 per cent.
Dan Frumkin, Metro Bank’s chief executive, hinted in a conference call last month that Barclays was among the potential buyers for the mortgage book.
A deal is likely to be reached by the end of 2023, according to Sky.
Barclays did not immediately respond to a request for comment by City A.M. Metro Bank declined to comment.
