FirstRand to takeover Aldermore for USD1.3 billion

FirstRand to takeover Aldermore for USD1.3 billion

Africa’s largest financial services group, FirstRand said it has completed an agreement to acquire UK’s Aldermore for USD1.3 billion.

Aldermore said it received a 313p per share offer for the entire business, which has been recommended by the Board to the Group’s shareholders.

Phillip Monks, CEO, commented: “Aldermore remains focused on delivering against our stated priorities, with more new lending to customers, greater leverage of our efficient operating model and a robust credit performance. Together, these contribute towards continued strong capital generation, with our CET1 ratio now above 12%.

“Total new lending of over £2.4bn has been delivered within our consistent risk appetite and has driven loan book growth of £0.9bn to £8.4bn, remaining on track to reach our guided range of 10% – 15%. “We have increased our support for SMEs, providing the vital financing they need to succeed, and have continued to see strong levels of growth in our Buy-to-Let portfolio as we capitalise on the trends of increasing professionalisation in the market. We continue to remain vigilant to changes in our operating environment with a key focus on driving a robust credit performance. As a result we continue to anticipate our cost of risk in 2017 remaining below our medium term guidance of 25 – 35bps.

“Ongoing delivery against our strategic and financial targets extends our track record of performance and provides us with continued confidence in our future prospects. Both of these factors have been reflected in the offer received from FirstRand, which the Board is recommending to Shareholders. With the backing of their considerable resources and wider capabilities, we will be able to accelerate the delivery of our strategy and further expand the products and services we offer our customers.”