(Alliance News) - Metro Bank Holdings PLC is in talks to sell a GBP3 billion mortgage portfolio to Barclays PLC as part of its restructuring process in a bid to prevent collapse.
Sky News reported on Monday that Metro Bank plans to sell its residential mortgage book in order to strengthen its capital position, with the news coming just hours before the lender is expected to announce a GBP925 million refinancing plan.
https://news.sky.com/story/barclays-in-talks-to-buy-3bn-metro-bank-mortgage-book-13017468
Metro Bank announced the refinancing plan in October. Sky said the recapitalisation has been "overwhelmingly" backed by shareholders.
Metro Bank on Monday said its refinancing plan received from 93% of its shareholders at its general meeting.
Under the plans, Colombian billionaire Jaime Gilinski Bacal will become a majority shareholder.
Sky News reported that Metro Bank will look to raise about GBP150 million of new equity and GBP175 million of new debt. It will also refinance GBP600 million of existing borrowings.
Metro Bank shares rose 4.9% to 40.85 pence each on Monday afternoon in London, while Barclays shares were down 0.8% at 140.46p each.
By Harvey Dorset, Alliance News reporter
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Metro Bank (MTRO)
Barclays (BARC)