Listing candidate Shawbrook in talks to buy SME lender ThinCats for £180m

The British-based slope Shawbrook is successful talks to bargain ThinCats, a lender to medium-sized businesses, successful a woody worthy astir £180m.

Sky News has learnt that the 2 companies are successful exclusive discussions astir a woody pursuing an auction of ThinCats conducted by bankers astatine Fenchurch Advisory Partners.

Sources said the exclusivity play was owed to extremity shortly.

A woody to bargain ThinCats would fortify Shawbrook's alternate financing capabilities arsenic it prepares for a £2bn flotation connected the London Stock Exchange.

Shawbrook's plans to spell nationalist were revealed by Sky News astatine the commencement of this year, though the timing of a flotation has been pushed backmost by persistent marketplace uncertainty.

Shawbrook, which employs adjacent to 1,600 people, has good implicit 500,000 customers.

Founded successful 2011, it was established arsenic a specializer savings and lending institution, providing loans for location betterment projects and weddings, arsenic good arsenic concern and existent property lending.

In caller years it has explored a drawstring of sizeable firm transactions, including mergers with oregon takeovers of rivals including Metro Bank, Starling Bank and the Co-operative Bank.

BC Partners and Pollen Street ain adjacent stakes successful Shawbrook, with its absorption squad besides owning a minority.

The slope is tally by Marcelino Castrillo, main executive.

If its pursuit of ThinCats is successful, it volition adhd different limb to its concern lending to SMEs.

In the 12 months to 30th June, ThinCats provided £381m of backing to businesses, a humble summation connected the erstwhile fiscal year's £378m.

The institution said that lending to owner-managed businesses had surged, particularly pursuing the autumn fund past November.

In total, ThinCats has present lent much than £2bn to businesses crossed the UK, with assets nether absorption lasting astatine conscionable nether £1bn.

ThinCats is tally by main enforcement Amany Attia, who is besides a shareholder successful the business.

In 2021, it announced a £160m concern from Wafra Capital Partners, a New York-based concern steadfast which is affiliated to an limb of the Kuwaiti state.

ThinCats declined to comment, portion Shawbrook could not beryllium reached for comment.