UK's Aldermore agrees to R20bn takeover by FirstRand
The local financial services company intends to make Aldermore its fifth franchise
FirstRand has tabled a R20bn offer for Aldermore, in a transaction that will enable the banking group to expand significantly into the UK in one bold move. FirstRand will delist the UK specialist lender from the London Stock Exchange if the deal is accepted by the required majority of shareholders. Its subsidiary FirstRand International has offered £3.13 per share, valuing the UK challenger bank at about £1.1bn. This is a 22% premium on Aldermore’s closing price on October 12, the day before fluctuations in the target company’s share price compelled Aldermore and FirstRand to inform the market they were in takeover talks. Documents released on Monday showed that FirstRand and Aldermore had been in talks since September, when both parties signed confidentiality undertakings. FirstRand intends to make Aldermore its fifth franchise, adding to First National Bank, WesBank, RMB and Ashburton. It plans to unbundle MotoNovo, its UK asset financier, from WesBank and merge it with Aldermore....
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