Shareholders of Metro Bank have overwhelmingly approved a rescue deal valued at nearly £1 billion, designed to ensure the bank's stability going forward.
The agreement, forged last month amid concerns about Metro's financial health, involves securing additional funds from investors and refinancing £600 million of debt, along with an infusion of £325 million in new funding. Approximately 93% of votes cast by shareholders supported the package, reflecting a strong belief in the bank's future.
As part of the deal, Colombian billionaire Jaime Gilinski Bacal, through his firm Spaldy Investments, will assume control of Metro Bank with a 53% stake, injecting £102 million into the institution. Metro Bank's CEO, Daniel Frumkin, hailed the agreement as signalling a "new chapter" for the bank. The shareholder vote marked the final step, following bondholders' approval in October, even though they faced a 40% loss on their investments.
Founded in 2010 as the first new bank in the UK in over a century, Metro Bank positioned itself as a "challenger" to traditional High Street banks, boasting branches open seven days a week. With 2.7 million customers and £15 billion in deposits across 76 branches, the bank faced challenges, including a 2019 accounting scandal leading to executive departures, and a subsequent decline in share price from over £40 in 2018 to 41p by mid-afternoon on Monday, showing a 5.3% increase for the day.
Amid reports in early October about the need for financial reinforcement, Metro Bank consistently asserted its financial strength and adherence to regulatory requirements.