On Friday 31st March the challenger bank received an offer from Marlin Bidco - a company jointly owned by funds managed or advised by Pollen Street and BC Partners - to acquire the entire issued and to be issued share capital of Shawbrook.

Shawbrook's board revealed it would not be recommending the offer after it noticed that the offer price had not changed from the proposed terms that were rejected earlier in March.

The board acknowledged a change in transaction structure from a scheme of arrangement to a takeover offer with an acceptance condition of 50% plus one share.

As a result of the news, Shawbrook's share prices climbed by 9.8% from 304.3p at close on 30th March to 334.02p at 10am on 31st March.

"We have been a supportive shareholder of Shawbrook since it was founded in 2011, and through the offer will continue to be invested for years to come,' said Lindsey McMurray, Pollen Street's representative director on the board of Shawbrook.

“We believe that the offer will provide liquidity to those investors that seek it and create an ownership structure comprising long-term, supportive investors that will allow the company to adopt a more flexible approach to changing market dynamics.

“We look forward to working with the Shawbrook management team and BC Partners to build on the company's strong foundations as a specialist lender."

Funds which are managed or advised by Pollen Street, currently hold around 38.9% of the issued share capital of Shawbrook.

Shawbrook confirmed Lindsey McMurray had not been involved in the board's consideration of the offer.

The board added that it would be communicating with shareholders to set out its views in more detail, having recommended that shareholders reject the offer.

Shawbrook is being advised by BofA Merrill Lynch and Goldman Sachs International in respect of the offer.