FirstRand weighs acquisition of UK bank Aldermore
FirstRand is considering a R19.4bn acquisition of London-listed lender Aldermore in a deal that would accelerate the banking group’s UK expansion and put surplus capital to work. News of the potential transaction broke on Friday after a double-digit surge in the share price of Aldermore forced it to come clean about FirstRand’s approach. Aldermore, with its “unique operating model, market positioning and strength in deposit-taking would provide the ideal platform” for FirstRand to fulfil its expansion strategy on an “accelerated basis”, FirstRand said on Friday. It was still undertaking a due diligence. “There can be no certainty that any firm offer will be made,” it said. Aldermore ended the week 18.6% higher at 303.5p — just shy of its record of 316p, and not far off FirstRand’s possible offer level of 313p per share, which would give the deal a value of about £1.1bn. FirstRand’s share price closed 1.89% weaker on Friday at R53.35. FirstRand would, if the deal materialises, join a...
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