Challenger bank Shawbrook PLC (LON:SHAW) is set to re-acquired by its former owners and de-list after acceptances for a revised bid worth 340p per share took the bidders’ stake above 75%.
The bank's independent directors have consistently rejected the approach and said even the revised 340p final offer undervalued the bank and its prospects, but given the level of acceptances they now had to no option but to recommend the bid.
“It is likely that Shawbrook shareholders who do not accept the final offer could, as a result, own a minority interest in an unlisted company. This would significantly reduce the liquidity of Shawbrook shares,” they said.
Accordingly, the advice is that shareholders accept the final offer,
Marlin Bidco, the bid vehicle for private equity groups BC Partners and Pollen Street Capital, had said previously it intends to de-list the bank if shares outstanding dropped below 25%.
Shawbrook began trading at 290p a share in April 2015, valuing the stock at £725mln.
But like other challenger banks, its earnings have been squeezed by a prolonged period of low interest rates.