The troubled British bank Metro has reached a deal that will shore-up its finances after a weekend of negotiations.
The deal includes a £325 million ($396 million) capital injection and £600 million in debt refinancing.
Spaldy Investments, which is already Metro Bank's largest shareholder, is contributing £102 million and will, once the deal is gets regulatory approval, control about 53 per cent of the bank's shares.
Spaldy, which is controlled by the Colombian billionaire Jaime Gilinski, currently owns 9.2 per cent of Metro shares.
Those shares have had a rough time lately - they fell significantly last month after regulators refused to approve a request to lower Metro's capital requirements attached to its mortgage business, and then plunged last week on the news that its finances needed shoring up.
'A new chapter'
The Bank of England's Prudential Regulation Authority, which regulates the UK's banking sector, spent the weekend sounding out potential buyers for Metro, most of whom were not interested in the business as a whole. Some were thought to be keen to buy parts of the Metro, specifically the bank's mortgage arm.
Daniel Frumkin, chief executive at Metro, said that the deal "marks a new chapter" for the bank and will lead to "continued profitable growth over the coming years".
"Our strong franchise is underpinned by our loyal customer base and engaged colleagues and we will continue to develop the Metro Bank offer to provide the digital and physical banking services our customers expect," he said.
"We thank our shareholders and noteholders for their continuing support of Metro Bank and our customers."
Meanwhile, Mr Gilinski said his increased investment was driven by a belief in "the need for physical and digital banking underpinned by a focus on exceptional customer service".
However, the deal is not without financial pain.
The shares will be heavily diluted by the £150 million equity offering of 30 pence a share, a deep discount to the 45 pence level the shares closed at on Friday.
In addition, the refinancing of £600 million worth of debt will mean that Metro will paying higher rates of interest on its borrowings.
'Northern Rocked'
"Management is calling this a new chapter for the bank, but more developments are expected to trim down its loan book and put it on a firmer footing," said Susannah Streeter, head of money and markets at Hargreaves Lansdown.
"It’s still in discussions about selling a big chunk of its mortgage book. This overall deal should help ensure the challenger bank can still expand."
But while many analysts broadly welcomed the deal, there were warnings that Metro is not entirely out of danger. Some said a future collapse along the lines of the ill-rated Northern Rock bank in 2007 was still possible.
"Metro's much-publicised problems may not be fixed by this capital raise led by its largest stakeholder," Ranald Mitchell, director at Charwin Private Clients told Newspage.
"Reputational damage will likely lead to further problems and its customers will need a lot more reassurances.
"In the worst case scenario, we could see a repeat of 2007. Metro Bank could still be Northern Rocked.”
Metro was launched in 2010, following the global financial crisis, and was the first new bank on the UK's high streets in a 100 years. It has 2.7 million customers and 76 branches across the country.
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How Filipinos in the UAE invest
A recent survey of 10,000 Filipino expatriates in the UAE found that 82 per cent have plans to invest, primarily in property. This is significantly higher than the 2014 poll showing only two out of 10 Filipinos planned to invest.
Fifty-five percent said they plan to invest in property, according to the poll conducted by the New Perspective Media Group, organiser of the Philippine Property and Investment Exhibition. Acquiring a franchised business or starting up a small business was preferred by 25 per cent and 15 per cent said they will invest in mutual funds. The rest said they are keen to invest in insurance (3 per cent) and gold (2 per cent).
Of the 5,500 respondents who preferred property as their primary investment, 54 per cent said they plan to make the purchase within the next year. Manila was the top location, preferred by 53 per cent.
Key facilities
- Olympic-size swimming pool with a split bulkhead for multi-use configurations, including water polo and 50m/25m training lanes
- Premier League-standard football pitch
- 400m Olympic running track
- NBA-spec basketball court with auditorium
- 600-seat auditorium
- Spaces for historical and cultural exploration
- An elevated football field that doubles as a helipad
- Specialist robotics and science laboratories
- AR and VR-enabled learning centres
- Disruption Lab and Research Centre for developing entrepreneurial skills
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THE SPECS
Engine: 1.5-litre turbocharged four-cylinder
Transmission: Constant Variable (CVT)
Power: 141bhp
Torque: 250Nm
Price: Dh64,500
On sale: Now
The specs
- Engine: 3.9-litre twin-turbo V8
- Power: 640hp
- Torque: 760nm
- On sale: 2026
- Price: Not announced yet
Martin Sabbagh profile
Job: CEO JCDecaux Middle East
In the role: Since January 2015
Lives: In the UAE
Background: M&A, investment banking
Studied: Corporate finance
UPI facts
More than 2.2 million Indian tourists arrived in UAE in 2023
More than 3.5 million Indians reside in UAE
Indian tourists can make purchases in UAE using rupee accounts in India through QR-code-based UPI real-time payment systems
Indian residents in UAE can use their non-resident NRO and NRE accounts held in Indian banks linked to a UAE mobile number for UPI transactions
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Martin Puchner
Granta
ELIO
Starring: Yonas Kibreab, Zoe Saldana, Brad Garrett
Directors: Madeline Sharafian, Domee Shi, Adrian Molina
Rating: 4/5
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If you go
The flights
There are various ways of getting to the southern Serengeti in Tanzania from the UAE. The exact route and airstrip depends on your overall trip itinerary and which camp you’re staying at.
Flydubai flies direct from Dubai to Kilimanjaro International Airport from Dh1,350 return, including taxes; this can be followed by a short flight from Kilimanjaro to the Serengeti with Coastal Aviation from about US$700 (Dh2,500) return, including taxes. Kenya Airways, Emirates and Etihad offer flights via Nairobi or Dar es Salaam.
Match info
Deccan Gladiators 87-8
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Arabians won the final by eight wickets
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- Priority access to new homes from participating developers
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- DLD registration fee can be paid through banks or credit cards at zero interest rates
COMPANY PROFILE
Lexus LX700h specs
Engine: 3.4-litre twin-turbo V6 plus supplementary electric motor
Power: 464hp at 5,200rpm
Torque: 790Nm from 2,000-3,600rpm
Transmission: 10-speed auto
Fuel consumption: 11.7L/100km
On sale: Now
Price: From Dh590,000
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At a glance
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Welfare: Universal credit health element cut by 50 per cent and frozen for new claimants, building on cuts to the disability and incapacity bill set out earlier this month
Spending cuts: Overall day-to day-spending across government cut by £6.1bn in 2029-30
Tax evasion: Steps to crack down on tax evasion to raise “£6.5bn per year” for the public purse
Defence: New high-tech weaponry, upgrading HM Naval Base in Portsmouth
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Saudi Cup race day
Schedule in UAE time
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What are the influencer academy modules?
- Mastery of audio-visual content creation.
- Cinematography, shots and movement.
- All aspects of post-production.
- Emerging technologies and VFX with AI and CGI.
- Understanding of marketing objectives and audience engagement.
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Getting there
The flights
Flydubai operates up to seven flights a week to Helsinki. Return fares to Helsinki from Dubai start from Dh1,545 in Economy and Dh7,560 in Business Class.
The stay
Golden Crown Igloos in Levi offer stays from Dh1,215 per person per night for a superior igloo; www.leviniglut.net
Panorama Hotel in Levi is conveniently located at the top of Levi fell, a short walk from the gondola. Stays start from Dh292 per night based on two people sharing; www. golevi.fi/en/accommodation/hotel-levi-panorama
Arctic Treehouse Hotel in Rovaniemi offers stays from Dh1,379 per night based on two people sharing; www.arctictreehousehotel.com
RESULTS
THE SPECS
Engine: 4.0L twin-turbo V8
Gearbox: eight-speed automatic
Power: 571hp at 6,000rpm
Torque: 800Nm from 2,000-4,500rpm
Fuel economy, combined: 11.4L/100km
Price, base: from Dh571,000
On sale: this week
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Specs
Kareem Shaheen on Canada
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Which honey takes your fancy?
Al Ghaf Honey
The Al Ghaf tree is a local desert tree which bears the harsh summers with drought and high temperatures. From the rich flowers, bees that pollinate this tree can produce delicious red colour honey in June and July each year
Sidr Honey
The Sidr tree is an evergreen tree with long and strong forked branches. The blossom from this tree is called Yabyab, which provides rich food for bees to produce honey in October and November. This honey is the most expensive, but tastiest
Samar Honey
The Samar tree trunk, leaves and blossom contains Barm which is the secret of healing. You can enjoy the best types of honey from this tree every year in May and June. It is an historical witness to the life of the Emirati nation which represents the harsh desert and mountain environments
Sole survivors
- Cecelia Crocker was on board Northwest Airlines Flight 255 in 1987 when it crashed in Detroit, killing 154 people, including her parents and brother. The plane had hit a light pole on take off
- George Lamson Jr, from Minnesota, was on a Galaxy Airlines flight that crashed in Reno in 1985, killing 68 people. His entire seat was launched out of the plane
- Bahia Bakari, then 12, survived when a Yemenia Airways flight crashed near the Comoros in 2009, killing 152. She was found clinging to wreckage after floating in the ocean for 13 hours.
- Jim Polehinke was the co-pilot and sole survivor of a 2006 Comair flight that crashed in Lexington, Kentucky, killing 49.
HEADLINE HERE
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