Colombian Billionaire Takes Control of UK’s Struggling Metro Bank
Jaime Gilinski Bacal, a prominent Colombian banking and real estate entrepreneur, has assumed control of Metro Bank as part of a comprehensive rescue plan aimed at addressing financial challenges faced by the UK-based lender.
In a statement released on Sunday, Metro Bank disclosed that it had successfully secured £325 million ($396 million) from investors, consisting of £150 million ($183 million) in equity and £175 million ($213 million) in debt.
Spaldy Investments, a vehicle controlled by Gilinski Bacal, will contribute £102 million ($124 million) of the new equity, resulting in an increase in its ownership stake from the current 9% to 53%. This development marks a significant shift in Metro Bank’s ownership structure.
The capital injection follows a recent decline in the bank’s share price, triggered by media reports of its search for additional funding. On Monday, Metro Bank’s shares rebounded, trading 27% higher, which helped mitigate its year-to-date loss, reducing it to 51%.
Metro Bank’s CEO, Daniel Frumkin, expressed his optimism about the deal, stating that it signifies a new phase for the bank, which has faced financial losses in recent years. He added that the focus would remain on delivering exceptional customer service.
Jaime Gilinski Bacal, an investor in Metro Bank since 2019, emphasized his belief in the importance of combining physical and digital banking while maintaining a strong commitment to outstanding customer service. His decision to become the bank’s major shareholder reflects his dedication to this vision.
