FTSE-250 asset manager Jupiter is in advanced talks to sell a £100m stake in Starling Bank at a heavy discount on its most recent valuation of £2.5bn this April.

Jupiter Fund Management is in talks with several of the challenger bank's existing investors, with a view to offloading a seven per cent share in the firm, Sky News first reported.

The London-listed asset manager, which owns a 10 per cent stake in the digital bank, is seeking to sell the stake for around £100m, in a deal that would value Starling at just £1.5bn.

Alongside Jupiter, Starling Bank's main shareholders include pension fund Railpen, Qatar's sovereign wealth fund, company founder Anne Boden, and a division of Goldman Sachs.

Starling's £2.5bn valuation came after the bank raised £130.5m this April to finance its expansion plans.

The sharp discount on the bank's April valuation comes as technology company share prices have fallen over the past year, in a rout that saw Jupiter's UK mid-cap fund drop.

(c) 2022 City A.M., source Newspaper