Challenger bank Shawbrook rejected a 'final' £868 million takeover bid

LONDON — Challenger bank Shawbrook rejected a fourth and “final” £868 million ($US1.12 billion) takeover bid from a private equity consortium on Tuesday morning.

The bank was subject to a multi-million pound bid from Pollen Capital and BC Capital, after its directors said the deal undervalued the lender. Pollen already has a 40% stake in the bank.

It is the third offer from the consortium, which operates under the name of BC Capital’s Martin Bidco, that the bank has rebuffed this year.

A note to shareholders said: “The independent directors have considered the terms of the final offer with their advisers and have taken into account feedback received from shareholders. The independent directors believe that the final offer undervalues Shawbrook and its prospects.”

“The independent directors believe Shawbrook can continue to grow prudently over the medium term.”

Shawbrook is a specialist lender set up take on Britain’s biggest banks. It was floated on the London Stock Exchange in April 2015 at 290p a share, valuing the bank at £725 million.

The offer will remain open for acceptance until June 19, but the directors have urged shareholders to “take no action with regards to the final offer.”

Shares in the London-listed bank dipped around 0.3% in early hours trading. Here is the chart at 9.20 a.m. BST (4.20 a.m. ET):

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