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Attractive at this price, hard to imagine this declines to 2020 low, IMO it won’t.
—@katstrangler Also, can't see a takeover coming with finances about to be sorted unless it's for an extraordinary price on today's price as the company will feel sure they'lve taken the worst and now settled in for some real growth
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interesting. makes sense.
And the interesting thing here is that Shawbrook bids were rejected several times this year and was reported to consider a fresh bid to buy Metro Bank last week, this could arrive anytime now in my view because Shawbrook will likely be rejected again if the bid arrives after metro’s mortgage book sales.
between now and the mortgage sales is the only opportunistic time for Shawbrook to deliver its bid.
hence I find it interesting here
The billionaire Jaime is putting his reputation on the line.
He’s going to make sure Metro becomes successful. In return he wants that 53%, a control stake, at favorable price. sorry but many are not him
Maybe, but once the deal is done, Metro will be a ‘different’ bank. It will no longer be operating within buffer. It will focus on growth instead of just talking about AIRB for capital relief. It will be more profitable. All the previous concern like refinancing the bond is no longer there.
Hence that equity raise is significant. It’s not something anybody else can do and have the opportunity to do it.
This is my view, I was looking at OSB but found Metro interesting after what happened.
Metro Bank wants rival high street lenders to submit offers by early November as it continues to repair its balance sheet, Sky News understands.
So is it ‘at’ or ‘by’ beginning of November..?
Anyway there is a clear timeline so market doesn’t have to guess.
They want to give an update on this by the Q3 trading update it seems
Metro does specialist mortgages and their deposits are sticky. They are poised for growth. But costs are horrible, needs contained. billionaire owner injects equity, and is bullish about the business.
OSB recent updates challenges the model but seems more stable. Cautiously optimistic on this one, leaning on a buy.
MTRO, interesting take :
Some viewed that as a canny move by the regulator to push investors to the negotiating table.
In any case, investors on both sides were more keen to get on board with a deal that shared the burden of the bank's struggles.
Several of the bankers involved in the deal pulled all-nighters as they tried to hammer out the details.
Regulators, though, were largely more sanguine.
One official at the Bank of England said while the central bank spent much of the weekend monitoring the discussions, officials were confident a deal would be struck and were able to go to bed early on Sunday.
Just before 10pm, a statement announcing the capital package was released. Metro was able to refinance all of its existing £600mil worth of debt as well as raise £325mil in fresh capital, including £150mil of new equity and £175mil of new bail-in bonds due in 2028.
Customers not sticky but the stock does appear undervalued
@Hounddog10
Good point about 250m additional equity.
The net is actually 200m, the CFO said during the call that the 100m debt relief from tier 2 bond is gross number.
minus tax and other expenses they’ll get net 50m to equity
So 200m new equity = 150m new equity + 50m net debt relief on the tier 2 bond
Yesterday, Gilinski told the Financial Times that he saw opportunities to use Metro as a base for acquisitions — once costs are brought under control — following a similar playbook to the one he has used during four decades of dealmaking in Latin America.
The refinance deal still needs to be approved by regulators, as does the equity raise, given Gilinski’s increased stake gives him majority control.