June 5 (Reuters) - The private equity groups behind a hostile bid for Shawbrook Group said on Monday they had increased their offer price for the British challenger bank by just over 3 percent.
The offer of 340 pence a share values Shawbrook at about 868 million pounds ($1.12 billion), up from the previous 842 million pound bid Marlin Bidco, the buyout vehicle set up by BC Partners and Pollen Street Partners, said in a statement.
The offer, which is a 27 percent premium to Shawbrook’s closing share price on March 2, when the lender first received a bid from the private equity firms, would now remain open until June 19.
“After carefully considering market feedback we are pleased to be able to make an improved best and final offer, which we consider offers shareholders an attractive premium and compelling value” Lindsey McMurray of Pollen Street Capital and Cédric Dubourdieu of BC Partners said.
The private equity groups already hold 38.8 percent of Shawbrook shares and have so far received acceptances from investors holding another 6.6 percent of the stock, leaving them just under 5 percent short of the required 50 percent backing needed for the deal to go through. ($1 = 0.7769 pounds) (Reporting by Noor Zainab Hussain in Bengaluru; Editing by Rachel Armstrong)