Colombian billionaire takes control of UK’s struggling Metro Bank

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Colombian billionaire takes control of UK’s struggling Metro Bank
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Jaime Gilinski Bacal, a Colombian banking and real estate entrepreneur, has taken control of Metro Bank as part of a bigger rescue deal to fill a hole in the UK lender’s finances.

Metro Bank said in a statement late on Sunday that it had raised £325 million from investors, split between £150 million of equity and £175 million of debt. Of the new equity raised, Spaldy Investments, the vehicle controlled by Gilinski Bacal, will contribute £102 million , increasing its stake to 53% from 9% currently. The capital raise comes after a sell-off last week in the bank’s shares, sparked by media reports that the bank was on the hunt for fresh funds.

Metro Bank’s shares were trading 27% higher Monday, trimming this year’s loss to 51%. Metro Bank CEO Daniel Frumkin said the deal “marks a new chapter” for the lender, which has reported financial losses for several years. Gilinski Bacal, an investor in Metro Bank since 2019, added: “The opportunity to become the bank’s major shareholder is driven by my belief in the need for physical and digital banking underpinned by a focus on exceptional customer service.

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