Shawbrook recommends shareholders accept Marlin Bidco's final offer

Shawbrook Bank's directors have recommended that shareholders accept the final offer made by Marlin Bidco - jointly owned by Pollen Street and BC Partners - on Monday after it became wholly unconditional with nearly 76% of acceptances.

While they still reckon the final offer undervalues the company and its prospects, Shawbrook's directors recognised that the level of support obtained by the private equity firms mean they will have obtained a very significant level of control over the group.

"This level of control will enable Marlin Bidco to implement its stated intention to procure that Shawbrook applies to the UK Listing Authority for the cancellation of its listing on the Official List and to the London Stock Exchange for the cancellation of its admission to trading. Consequently, it is likely that Shawbrook shareholders who do not accept the final offer could, as a result, own a minority interest in an unlisted company. This would significantly reduce the liquidity of Shawbrook shares.

"Accordingly, the independent directors, who have been so advised by BofA Merrill Lynch and Goldman Sachs International, now recommend that shareholders accept the final offer, as the Independent directors will now be doing in respect of their own beneficial shareholdings."

On Monday, Marlin Bidco said its offer for Shawbrook had become unconditional after it secured support in respect of 75.6% of the company's shares. The offer of 340p per share, which values Shawbrook at £868m, will remain open until 10 July.

At 0950 BST, the shares were flat at 339.40p.