£427m gain: Metro Bank sale puts Colombian investor on top

Metro Bank is now for sale. The move puts a £427 million windfall within reach for its largest shareholder, Colombian billionaire Jaime Gilinski Bacal.

The bank announced Thursday that it is officially placing itself on the market. It is the first time the lender has publicly signaled it is open to bids. This tactic is intended to attract a wider range of potential suitors.

The news sent the stock price up 7% by mid-morning. The share price reached 190p, valuing the entire institution at roughly £1.3 billion. Gilinski Bacal owns 53% of the bank. His shares are held by Spaldy Investments, a vehicle based in the British Virgin Islands.

Three years ago, the tycoon bought into the bank at a low point. He acquired his stake for 30p per share as part of a rescue package. At the current 190p trading price, his position has grown sixfold in value. If he sells, the gain would be approximately £427 million.

Gilinski Bacal, 68, is known for buying distressed banks, fixing them, and reselling them. Forbes lists his net worth at $16.9 billion, or about £12.7 billion. He is considered one of the wealthiest people in Latin America.

Metro Bank was founded in 2010 by Vernon Hill. It was the first new high street bank in the UK in over a century. The bank originally marketed itself with dog-friendly branches and seven-day hours. But a major accounting error in 2019 triggered a confidence crisis. Share prices fell, deposits were pulled, and several executives, including Hill, resigned.

The bank faced another crisis in 2023. Regulators were not convinced the lender could assess its own risks. This led to a £925 million rescue deal involving the Bank of England. Since then, the bank has shifted its lending focus toward businesses and individuals with variable income streams. It also closed Sunday branch operations. Chief Executive Daniel Frumkin cut more than 1,000 jobs in spring 2024 to restore financial health.

The board has unanimously agreed to pursue a sale to maximize value for shareholders. However, the bank stated it remains prepared to continue independently if a suitable bidder does not emerge.