Source: Sharecast
According to Sky News, the two companies are in exclusive discussions about a deal following an auction of ThinCats conducted by bankers at Fenchurch Advisory Partners.
Sources told Sky the exclusivity period was due to end shortly.
A deal to buy ThinCats would strengthen Shawbrook's alternative financing capabilities as it prepares for a £2bn flotation on the London Stock Exchange, Sky said.
Sky revealed Shawbrook’s plans to go public at the start of this year, but the timing of a flotation has been pushed back by persistent market uncertainty.
Founded in 2011, Shawbrook employs close to 1,600 people and has in excess of 500,000 customers.
It was established as a specialist savings and lending institution, providing loans for home improvement projects and weddings, as well as business and real estate lending.
In recent years it has explored a string of sizeable corporate transactions, including mergers with or takeovers of rivals including Metro Bank, Starling Bank and the Co-operative Bank.
BC Partners and Pollen Street own equal stakes in Shawbrook, with its management team also owning a minority.
Sky said that if its pursuit of ThinCats is successful, it will add another leg to its business lending to SMEs.
In the 12 months to 30th June, ThinCats provided £381m of funding to businesses, up a touch from £378m the year before.
