Metro Bank Sale Could Deliver Colombian Billionaire Jaime Gilinski Bacal a £427M Rescue Windfall

Metro Bank has opened a formal sale process that could put a stake worth about £689 million held by its majority shareholder, Colombian billionaire Jaime Gilinski Bacal, in play. The lender said it had received no offers, and the figure represents a market valuation rather than confirmed sale proceeds.

The bank announced the strategic review on Thursday. Metro shares rose about 7 per cent in morning trading to 190p, valuing the company at roughly £1.3 billion.

Mr Gilinski Bacal owns about 53 per cent of Metro through Spaldy Investments, his British Virgin Islands-based vehicle. The £689 million estimate is based on the value of his holding at the bank's current market price. Any proceeds would depend on the price and terms of a deal, and the figure does not establish his profit from an investment.

Sale Process Opens With No Offers

Metro said it was not in active discussions with potential bidders and that there was no certainty an offer would be made.

The bank said it remained confident in its standalone growth prospects. If the process did not produce a suitable bid, it would continue pursuing its existing strategy.

In its statement, the bank said its board 'unanimously believes' that exploring interest in the company would be worthwhile. It said the process 'will maximise the value creation opportunities available to shareholders and deliver benefits for all stakeholders'.

The 2023 Rescue and Gilinski's Stake

Mr Gilinski Bacal took control in 2023, when Metro needed fresh capital after regulatory difficulties over its application to use internal models to calculate risk-weighted assets.

The bank secured a £925 million capital package, which included debt refinancing and additional funding. The package included a £150 million equity raise at 30p a share, led by Spaldy, which contributed £102 million. Metro shares now trade at well over six times that price, although this comparison alone does not establish the value or profit of Spaldy's overall investment.

Metro's latest shareholder disclosures are consistent with the 53 per cent figure. Its March annual general meeting documents recorded Spaldy at 52.98 per cent, while a September regulatory notification reported 53.03 per cent.

Forbes estimates the 68-year-old's net worth at $16.9 billion (£13.1 billion) and describes him as having built one of Latin America's largest banking empires through mergers and acquisitions.

Chief executive Daniel Frumkin has focused on improving profitability and changing Metro's lending mix, with greater emphasis on business and specialist lending. In March 2024, the bank announced plans to cut around 1,000 jobs, about 22 per cent of its workforce, and ended Sunday and bank holiday opening at its branches.

Metro's Early Rise and 2019 Setback

Metro was launched in 2010 by American businessman Vernon Hill and was Britain's first new high street bank in more than a century. Its customer-service model included seven-day opening and dog-friendly branches.

In January 2019, Metro disclosed that it had incorrectly classified certain commercial property and buy-to-let loans, understating its risk-weighted assets. The disclosure hit investor confidence, sent the share price lower and contributed to deposit withdrawals. Mr Hill announced his departure from the board in October that year.

The sale process follows the bank's 2023 capital raise, but no buyer has emerged. The £689 million estimate is the current market value of Mr Gilinski Bacal's stake, not a confirmed payout.