South Africa’s largest bank, FirstRand Ltd said it has approached Aldermore for a possible acquisition.
The acquisition is planned to be 100% shares in Aldermore.
FirstRand is required to disclose its final decision by the 10th of November, 2017 whether it will go ahead with the acquisition.
See the statement of Aldermore below:
The Board of FirstRand Limited (“FirstRand”), the parent company of FirstRand Bank Ltd., notes the statement made by Aldermore Group PLC (“Aldermore”) today and confirms that it has made an approach to acquire the entire issued and to be issued share capital of Aldermore.
FirstRand has been assessing opportunities to build a sustainable long-term deposit franchise to fund its strategy to grow and diversify the revenues of its current UK business. The possible acquisition of Aldermore, with its unique operating model, market positioning and strength in deposit taking, would provide the ideal platform for FirstRand to fulfil this strategy on an accelerated basis.
The making of any firm offer would be subject to the satisfaction of a number of pre-conditions including, but not limited to, due diligence to the satisfaction of FirstRand, and the unanimous recommendation of the Board of Aldermore.
There can be no certainty that any firm offer will be made.
In accordance with Rule 2.6(a) of the UK Takeover Code, FirstRand is required, by no later than 5.00 p.m. on 10 November 2017, being 28 days after today’s date, either to announce a firm intention to make an offer for Aldermore in accordance with Rule 2.7 of the UK Takeover Code or announce that it does not intend to make an offer, in which case the announcement will be treated as a statement to which Rule 2.8 of the UK Takeover Code applies. This deadline can be extended with the consent of the Panel on Takeovers and Mergers (the “Panel”) in accordance with Rule 2.6(c) of the UK Takeover Code.
A further announcement will be made if appropriate.