Shawbrook Bank is currently in exclusive discussions to purchase ThinCats, a lending company that serves medium-sized businesses, reported Sky News.
The potential deal, which is reported to be valued at approximately £180m, follows an auction process managed by Fenchurch Advisory Partners.
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The exclusivity period for the negotiations is expected to end soon.
If Shawbrook acquires ThinCats, it will bolster its lending services to SMEs.
ThinCats has a track record of supporting businesses with funding, having provided £381m in the year ending 30th June, which is a slight increase from the £378m funded in the previous year.
ThinCats has experienced a notable surge in lending to owner-managed businesses, particularly after the autumn budget last November, the report said.
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By GlobalDataTo date, the company has extended over £2bn in loans to UK businesses, with its assets under management approaching £1bn.
The company is led by CEO Amany Attia, who also holds a stake in the business.
In 2021, ThinCats announced £160m investment from Wafra Capital Partners, an investment firm based in New York and affiliated with an entity of the Kuwaiti state.
Neither ThinCats nor Shawbrook have provided comments on the ongoing discussions, the report added.
Earlier this year, Shawbrook made headlines with its intention to go public.
However, market volatility has delayed the timing of its anticipated £2bn flotation on the London Stock Exchange, Sky News added.
The acquisition of ThinCats would enhance Shawbrook’s alternative financing offerings as it prepares for its market debut, the news publication added.
Shawbrook, which has a workforce of nearly 1,600 and serves over 500,000 customers, was founded in 2011.
It began as a specialist in savings and lending, offering products such as home improvement and wedding loans, in addition to business and real estate financing.
In recent years, Shawbrook has considered various corporate moves, including potential mergers and acquisitions involving Metro Bank, Starling Bank, and the Co-operative Bank.
The bank is equally owned by BC Partners and Pollen Street, with the management team holding a minority interest.
Marcelino Castrillo is the chief executive officer of Shawbrook Bank.
