Game-Changing Turn: Colombian Tycoon Seizes Reigns of UK's Ailing Metro Bank

Colombian banking and real estate entrepreneur, Jaime Gilinski Bacal, has acquired control of Metro Bank in a significant rescue deal aimed at addressing financial deficiencies experienced by the UK lender. In an announcement made on Sunday, Metro Bank revealed that it had secured £325 million ($396 million) from investors. The funds have been divided between £150 million ($183 million) of equity and £175 million ($213 million) of debt.

A view of a Metro Bank in Sheffield, UK. Picture date: Tuesday April 18, 2023. (Press Association via AP Images).

Mike Egerton/AP

Shares in this UK bank just plunged over 30%

Spaldy Investments, controlled by Gilinski Bacal, will contribute £102 million ($124 million) to increase its stake from 9% to 53% with the new equity raised. The bank's shares experienced a sell-off last week due to media reports about the search for fresh funds. However, Metro Bank's shares bounced back on Monday, trading 27% higher and reducing this year's loss to 51%.

Metro Bank CEO Daniel Frumkin expressed that the agreement signifies a fresh start for the institution, as it has been grappling with financial setbacks over the past few years.

Gilinski Bacal, an investor in Metro Bank since 2019, stated that his decision to increase his stake in the bank is rooted in his conviction regarding the indispensability of both physical and digital banking, with an emphasis on delivering outstanding customer service.

This is a developing story and will be updated.