Challenger Bank is in talks with Shawbrook pension funds and private equity companies on a £ 2bn sale.
Support: Shawbrook supports Owen Farrell’s Saracens
Challenger Bank has entered into sales talks with Shawbrook pension funds and private equity firms for £ 2bn.
The lender, which owns BC Partners and Pollen Street Capital, has also begun discussions with other investors to acquire shares.
It is unknown whether Pollen Street will sell its entire holding at Shawbrook or retain part of it. Analysts say the bank could estimate up to £ 2bn based on revenue forecasts.
The move comes after it was revealed last month that Shawbrook, which offers personal and business banking services, is also considering listing the stock market. Shawbrook emerged as a digital bank focused on lending to small firms after the financial crisis.
It was sold in London in 2015 for £ 725 million. However, two years later, it was again privatized by BC Partners and Pollen Street for around £ 900 million.
In 2017, the move to re-privatize Shawbrook came after an unexpected announcement that he had been paid £ 9m for bad loans in the asset finance department.
Its private equity owners have invested in its systems and technologies to strengthen the bank. According to the latest financial report, Shawbrook, which sponsors the Saracens rugby club, said its credit book grew 5 percent in 2020 to £ 7.1 billion.
It is one of a group of specialist lenders that includes Aldermore and OneSavings Bank, targeting individuals and businesses that are not fully serviced by major banks.
Transactions between rival banks are becoming more active. Last year, Co-op Bank offered just over £ 1 billion for TSB, which was rejected by owners Banco Sabadell. In December, The Mail on Sunday reported that the TSB was expected to go on sale this year after cutting costs.