Challenger Bank Redwood set to go public after R8 Capital reverse takeover

Redwood Bank will reportedly make its debut on listed public markets after agreeing a reverse takeover deal with R8 Capital Investments.

The cash shell announced Monday that it had agreed to buy the challenger bank’s parent company Redwood Financial Partners.

The deal will see RFP sold for more than £50 million, which will be paid in R8 shares.

London-listed R8 has applied to put its shares on hold pending the publication of a prospectus or an announcement that the deal will not go ahead.

The group also plans to conduct a simultaneous fundraising that will be contributed to the bank as Tier 1 regulatory capital.

According to reports, the move opens the door for the specialist investment bank, which was launched in 2017, to list on the London Stock Exchange.

According to Sky News City sources said Jonathan Rowland had identified R8 as the ideal vehicle to take Redwood Bank public and enable it to acquire other lenders and loan portfolios.

One analyst said Mr Rowland’s timing could prove opportune amid an expected wave of consolidation in the UK banking sector.

R8, formerly known as Mode Global Holdings, initially traded as a cryptocurrency until around January this year.

Rowland and his father David, who is known for bankrolling Prince Andrew, have lost millions from the cryptocurrency venture.

As a result, Rowland chose to wind down what was then known as Mode, a Bitcoin app he founded, after failing to secure the funds needed to survive.