Responding to a 37.6p (14.1%) jump in its share prices on 3^rd March, the group said it had received a proposal from a consortium comprising private equity fund manager Pollen Street Capital Limited and buyout firm BC Partners LLP regarding a possible offer for the entire issued and to be issued share capital of Shawbrook.

However, Shawbrook has now revealed that it has rejected the proposal after taking into account the terms of the potential offer, the board’s confidence in the group’s strategy and feedback from Shawbrook’s major institutional shareholders.

The latest proposal – submitted on 31^st January 2017 – would have offered a price of 330 pence per ordinary share, with Shawbrook’s shareholders retaining any final dividend in respect of the year ended 31^st December 2016, provided such dividend was no more than 3p per ordinary share.

The offer would have been made by a new company to be jointly owned by funds managed or advised by the Pollen Street and BC Partners consortium.

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Funds managed or advised by Pollen Street currently hold approximately 38.9% of the issued share capital of Shawbrook, having first invested in 2011.

Lindsey McMurray, Pollen Street’s representative director on the board of Shawbrook, had not been involved in the board’s consideration of the proposal.

Who is behind the proposal?

Pollen Street Capital was formed in 2013 when the RBS private equity team spun-out to establish an independent fund management business.

To date, the fund manager has invested over £1.2bn in a range of businesses across all stages of development, including secured lender 1^st Stop Group and personal loan broker Freedom Finance.

Pollen Street advised on the sale of a 5.51% stake in Shawbrook by the Special Opportunities Fund (Guernsey) LP in May 2016.

Meanwhile, Europe- and North America-based BC Partners has completed 93 acquisitions with a total enterprise value of approximately £99.7bn since 1986.

The company’s current investments include UK casual dining company Côte and motor insurer Sabre.