Challenger bank Redwood is closing in on a London listing through a reverse takeover deal with R8 Capital Investments PLC.
Founded in 2017, Redwood was established as a neobank to serve the SME market. The company offers financial services to startups including business savings accounts and mortgage decisions for commercial property investors.
“Today is an exciting day in the bank’s history. Completing this transaction would be a major step forward for us, providing an excellent opportunity for Redwood to raise more capital, grow and diversify,” said Redwood CEO Gary Wilkinson.
The bank, which announced its first profit last year, has signed off on a reverse takeover, which would see it combine with London-listed R8 Capital, founded by Redwood Bank’s co-founder Jonathan Rowland.
“I am incredibly proud of what the Bank has achieved in the six years since launch and I am confident about the next stage of our journey.
“We have an enviable network of intermediary partners, a driven team, and robust infrastructure to maximise future opportunities.”
John Stobart, the bank’s legal counsel said the deal represents a “key opportunity” for the company, however, it remains subject to “definitive terms being agreed and the completion of legal and financial due diligence and regulatory approvals”.