Metro Bank up for sale, with billionaire investor in line for £420m windfall
Metro Bank has announced it is open to bids, three years after its near-collapse, with Colombian billionaire Jaime Gilinski Bacal potentially set to make a £420m profit from his stake.
The bank made the rare decision to publicly announce it was open to bids on Thursday, causing its share price to jump 7% by mid-morning. The valuation now stands at approximately £1.3bn, with Gilinski Bacal's British Virgin Island-based vehicle, Spaldy Investments, potentially cashing out with a £427m windfall.
If the sale proceeds, it would allow the 68-year-old banking tycoon to exit the bank he helped save from near-failure in late 2023. Gilinski Bacal secured a 53% stake at that time, purchasing shares for just 30p each as part of the rescue deal.
Billionaire's Turnaround Strategy
The Colombian investor has built his fortune by acquiring struggling lenders at low prices, overhauling their operations, and selling them for substantial profits. According to Forbes, Gilinski Bacal is one of Latin America's wealthiest individuals, with an estimated net worth of $16.9bn (£12.7bn).
The board unanimously believes that evaluating potential interest in the company through a potential sale will maximise the value creation opportunities available to shareholders and deliver benefits for all stakeholders.
Bank's Turbulent History
Founded in 2010 by US businessman Vernon Hill, Metro Bank was the first new high street bank to launch in the UK in over a century. It attracted customers with innovative features like dog-friendly branches and seven-day opening hours.
However, the bank faced a major crisis in 2019 when an accounting blunder led to investor panic and customer withdrawals. The scandal resulted in the resignation of top executives, including Hill, who was known for bringing his Yorkshire terrier to the office.
Metro's troubles continued in 2023 when regulators required additional capital, leading to Gilinski Bacal's rescue. Since then, CEO Daniel Frumkin has implemented a turnaround plan that increased profits but involved cutting over 1,000 jobs and closing Sunday branches.
The bank emphasized that a sale remains just one option, and it will continue as an independent entity if no suitable bidder emerges.
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