Shawbrook board accepts private equity takeover offer

The private equity consortium has been trying to buy Shawbrook since January, but has now won acceptances from 75.6% of Shawbrook’s shareholders with an increased offer of 340p a share, valuing the business at £868m.

In a statement, Shawbrook Directors said they "continue to believe that the final offer undervalues Shawbrook and its prospects" but recognise that the group will obtain "a very significant level of control" which would allow it to cancel Shawbrook's listing on the London Stock Exchange.

Shawbrook said that consequently, "Shawbrook shareholders who do not accept the final offer could, as a result, own a minority interest in an unlisted company" which would significantly reduce the liquidity of Shawbrook shares.

The final offer is being extended and will remain open for acceptance until the 10 July 2017.