Discovery's directors to partially fund FirstRand deal
Financial services group directors want to subscribe for R240m of new Discovery shares between them
Discovery says that some of its directors, including CEO Adrian Gore, planned to partially fund the group’s R1.85bn acquisition of FirstRand’s stake in its credit-card venture. The financial services group said in September it would acquire full control of Discovery Card by buying out FirstRand’s 25% stake. Under the agreement, it will buy FirstRand’s interest in Discovery Bank, the remaining 25% stake that FirstRand has in the card joint venture, and all the rights to the Discovery card book. Discovery said on Thursday it had launched a R1.85bn share sale to fund the deal. Rand Merchant Insurance Holdings, which already owns 25% of Discovery’s ordinary shares, would apply for up to R464m worth of the new shares based on the clearing price of the bookbuild, Discovery said. Certain directors of Discovery, including Gore, Barry Swartzberg and Herschel Mayers, who collectively own 13% of Discovery, had agreed to subscribe for R240m of shares between them, it said. Rand Merchant Bank, a...
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