Shawbrook's (SHAW) largest shareholder, Pollen Street Capital, is not giving up. The asset manager has reasserted its bid for the challenger bank, as part of a consortium with private equity group BC Partners. However, the bidders have not increased their offer - which remains at 330p cash per share - but have instead opted for a takeover rather than scheme of arrangement. The former requires the consortium to secure more than 50 per cent acceptances and does not need the recommendation of the bank's board. The latter not only required board approval, but 75 per cent of acceptances of those voting.
The Shawbrook board has once again rebuffed the offer. A bank spokesperson cited previous statements regarding negative feedback from other major shareholders, and that the deal's terms undervalued the business. Shawbrook management is confident in its ability to deliver on its own growth strategy*.
The bidco's director, Lindsey McMurray, said the offer would provide "liquidity to those investors that seek it and create an ownership structure comprising long-term, supportive investors that will allow the company to adopt a more flexible approach to changing market dynamics".
