There has been recent unrest concerning challenger bank Metro Bank, with there being uncertainty as to what the future holds. Following on from a stakeholder meeting that took place on Monday, there appears to be more clarity. At the meeting, Metro Bank shareholders voted in favour of all resolutions. The meeting was broken down into four resolutions, all of which achieved over 90% of votes in favour of.
With overwhelming support in favour of the rescue plan, this could be the good news and the saving grace that Metro Bank has been looking for since its troubles became headline news in October. The deal hands majority shareholder control to Colombian Jaime Gilinski, who is the biggest investor in the deal.
On 8th October, Metro Bank announced that it had secured an inter-conditional £325m capital raise. This comprises of £150m of new equity and £175m of new MREL notes. It also includes a debt refinancing package in respect of £600m of its outstanding debt securities. This vote confirms approval for this plan to commence. It is expected that admission of the new shares will become effective at 8am on 30th November.
Statement from Metro Bank
The official response from Metro Bank reacts with positivity to the announcement. It stats: “Today we received support from our shareholders, who voted overwhelmingly in favour of a new capital package for the bank. This is testament to their belief and confidence in the future of Metro Bank. It proves there is a place in retail and business banking for our model of stores in major towns and cities, combined with online and mobile banking and great customer service. We remain committed to being the number one community bank and will expand our estate of 76 stores, with new stores planned in the north of England over the next two years.”
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