FEATURED STORY

Stanbic Africa eyes more stake in Kenyan operation

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Stanbic Africa Holdings Ltd (SAHL) has announced plans to increase its shareholding in Stanbic Holdings through a tender offer as part of plans to upscale Standard Bank Group’s operations in the country.

In a public announcement filed with the Capital Markets Authority, the London-registered SAHL said it served Stanbic Holdings Plc with notice on Thursday, March 15, of its intention to acquire an additional 59 million additional ordinary shares in the company’s issued share capital.

SAHL is a whole owned subsidiary of the South African-based Standard Bank Group and serves as the holding company by number of the majority of its African banking operations.

Currently, SAHL (through Stanbic Nominees Limited, on its behalf) holds 237,192,981 ordinary shares in Stanbic Holdings, representing 60% of its issued share capital. The targeted 59 million ordinary shares represent a stake of just under 15%.

SAHL says it is current shareholding means it has effective control of Stanbic Holdings under the take-over regulations. However, it says it would seek to be exempted from launching such a move as long as it would be allowed to maintain domestic shareholdings for strategic reasons as long as it also serves public interest.

“The price payable for each Ordinary Share in the Proposed Tender Offer is 95 Kenya shillings, which price is inclusive of the right for SAHL to receive the final dividend of Kenya shillings 4.00 per Ordinary Share in respect of the 2017 financial year proposal by the Board of Directors of Stanbic Holdings on 2 March 2018 for approval by shareholders of Stanbic Holdings at the Annual General Meeting to be held on 12 June 2018 and to be paid to shareholders shortly thereafter,” the public announcement says.

If the tender offer is accepted in full, SAHL will hold 296,192,981 ordinary shares in Stanbic Holdings, which will represent just under 75% of its issued share capital.

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SAHL says the proposed acquisition shows Standard Bank Group’s commitment to, and focus on, growing the business on the African continent and demonstrates its long-term confidence in Stanbic Holdings, and in the Kenyan banking market and economy generally.

Stanbic Holdings would continue to be listed on the Nairobi Securities Exchange even if the tender offer succeeds, which will be subject to regulatory approval.

 

 

Written by
BT Reporter -

editor [at] businesstoday.co.ke

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