In a move to stabilize the balance sheet of the UK's Metro Bank, Jaime Gilinski, a Colombian billionaire and Harvard MBA graduate, has increased his stake from 9.2% to 53% as part of a £925 million deal. This recent investment, which follows his initial entry into the bank during an accounting scandal in 2019, awaits regulatory approval.
Gilinski's initial investment came at a time when Metro Bank was facing significant challenges. In 2019, an accounting scandal led to a precipitous drop in its share price from its peak of £1.8 billion. Despite these setbacks and growing concerns about the viability of Metro Bank's branch-based model in the face of digital-only banks, Gilinski has remained steadfast in his belief that physical branches can still offer a competitive edge if costs are managed effectively.
However, this viewpoint is met with some skepticism as a survey indicates a preference for online banking among 67% of respondents. The banking industry has seen a shift towards digital platforms, leading to questions about the future role of physical branches.
Gilinski's business portfolio is not limited to the banking sector. He has collaborated with Britain’s Livingstone brothers and Qatari Diar on Panama’s largest real estate project and made hostile bids worth $3.7 billion for three companies under Colombia's Grupo Empresarial Antioqueño (GEA). This aggressive strategy resulted in GEA relinquishing food company Nutresa after a heated dispute, yielding a $3 billion gain for Gilinski and his partners.
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