Shawbrook suitors snubbed

Challenger bank Shawbrook, the small business lending specialist, has urged investors to reject a final takeover offer from private equity suitors, saying the proposal “undervalues” the firm.

Shawbrook reacted yesterday after Pollen Street Capital and BC Partners raised their takeover approach terms through the bidding vehicle Marlin Bidco to £868 million, or 340p a share, on Monday.

That offer came after the pair tabled an £825m offer in March at 330p a share.

Investors now have until 19 June to accept or reject the latest offer.

Shawbrook said in its statement yesterday: “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 and therefore advise that shareholders take no action with regards to the final offer.”

Shawbrook warned earlier this year in an investor circular over “significant” costs of the bid, at about £4m if it is aborted and up to £12.5m if it succeeds. The takeover approach comes after Pollen Street floated Shawbrook on the London Stock Exchange at 290p a share in April 2015, valuing the bank at £725m.

Onmonday,lindseymcmurray of Pollen Street Capital and Cedric Dubourdieu of BC Partners said the final offer gave shareholders an “attractive premium and compelling value”.

They added: “We continue to share the Shawbrook management team’s vision and look forward to working with them in the future to build on the company’s strong foundations as a specialist lender.”