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 | Standard Bank intends acquiring remaining issued ordinary shares of Liberty Holdings |  |  |
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27 May 2008
Standard Bank has announced its firm intention to acquire 40.83% of the issued ordinary share capital of Liberty Holdings which Standard Bank does not already own, at a price of R219.25 per share. This represents just over 20 million shares in Liberty Holdings.
The consideration represents a premium of 23.2% to the closing price of Liberty Holdings ordinary shares on 26 May 2008. If all Liberty Holdings shareholders accept the offer, the aggregate maximum consideration will amount to R4.4 billion in cash.
Standard Bank's intention in the offer is to give Liberty Holdings' shareholders the opportunity to realise their investments for cash and to re-invest in Liberty Group ordinary shares representing an approximately equivalent economic exposure. The offer is based on a premium of 6% to the value of the underlying investment held by Liberty Holdings in Liberty Group, to compensate the vast majority of long-term shareholders for taxes and brokerage costs in order to re-invest in Liberty Group.
Standard Bank has controlled Liberty through its shareholding in Liberty Holdings, since 1999. Standard Bank's effective economic interest in Liberty currently amounts to approximately 33%.
Says Standard Bank Chief Executive, Jacko Maree: "Standard Bank wishes to increase its effective economic interest in Liberty as part of rebalancing its portfolio of financial services subsidiaries and to align its economic exposure with its strategic and commercial contribution to Liberty. Should all Liberty Holdings shareholders accept the offer, based on 2007 earnings, Liberty's earnings will constitute over 11% of Standard Bank's headline earnings, up from 7% currently."
Following the Industrial and Commercial Bank of China transaction, which was concluded in March this year, Standard Bank has the necessary capital resources to finance the purchase of additional shares in Liberty Holdings without reducing the growth potential of the group's banking operations.
The offer will be implemented by way of an unconditional offer by Standard Bank to the minority shareholders of Liberty Holdings.
The circular containing further details in respect of the offer is expected to be posted on or about 30 June 2008 and the offer will close for acceptances on or about 25 July 2008.
All about Standard Bank Group and its structure
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