PE firms to take Britain's Shawbrook private after prolonged battle


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June 19 (Reuters) - Private equity groups trying to buy
British challenger bank Shawbrook Group Plc <SHAW.L> said on
Monday that shareholder acceptance of the takeover had exceeded
a key threshold, allowing the buyers to take the lender private.
    Marlin Bidco, the buyout vehicle set up by BC Partners and
Pollen Street Partners, said it had received valid support for
its offer from other Shawbrook shareholders owning a combined
75.6 percent of the company. [nRSS5241Ia]
    Shawbrook declined to comment.
    Valid acceptances representing 50 percent of the company
were required for the deal to go through with Shawbrook
remaining listed on the London Stock Exchange.
    Under the deal structure, the company would be de-listed if
at least 75 percent of its shareholders accept the offer, with
those who did not accept, being part owners of an unlisted
entity. [nL5N1H8120]
    Shawbrook earlier this month rejected a raised and final 868
million pound ($1.1 billion) offer from the private equity
groups, which already hold 38.8 percent of the lender.
[nL8N1J30NV]
    The consortium first made a bid for Shawbrook in January,
offering 307 pence per share, before raising its offer to 330
pence in March. However, so far, Shawbrook's directors had
advised shareholders to reject the offers. [nL8N1I4147]
    Founded in 2011, London-listed Shawbrook is one of several
'challenger' banks to emerge since the financial crisis to fill
a gap in small-business lending after larger banks slimmed down
to focus on bolstering their capital to meet tougher regulatory
requirements.
    These challenger banks have increasingly been seen as ripe
for takeovers in recent months, bankers who advise on mergers
and acquisitions have said, as a prolonged period of low
interest rates has squeezed earnings and the pound's fall has
made them cheaper for foreign buyers.

($1 = 0.7854 pounds)

 (Reporting by Noor Zainab Hussain and Sanjeeban Sarkar in
Bengaluru; Editing by Sai Sachin Ravikumar)
 ((noor.hussain@thomsonreuters.com; Within UK +44 20 7542 1810;
Outside UK +91 80 6749 2764; Reuters Messaging:
noor.hussain.thomsonreuters.com@reuters.net))

Keywords: SHAWBROOK GROUP BUYOUT/



This article appears in: Stocks , World Markets , Economy , Banking and Loans
Referenced Symbols: SHAW


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