South African group FirstRand takes over British bank Aldermore

The South African group FirstRand, has just bought the British Aldermore. Currently ranked 3rd bank of the continent (according to Jeune Afrique), this bank is now placing itself on the European financial market.

“Fourth in the Young Africa ranking of the top 200 African banks in 2016, the South African FirstRand won a rank in 2017, doubling her fellow countryman Barclay’s Africa Group, and her rise is far from over: on November 6th she thus launched a buy-out operation of the British Aldermore.

The UK-based bank, which employs 1,000 people and has 230 customers, responded favorably to FirstRand’s offer to buy, which offers a price of 313 pence (€ 3.55) per share, 22% more than its closing date of October 12, prior to the first buy-out offer, valuing Aldermore at £ 1.1 billion (€ 12.47 billion).

The South African bank with $ 83 billion balance sheet total, led by Johan Burger, further enhances its diversification, both in terms of business activity and geography.

In 2006, it had already acquired a British company, MotoNovo, active in the financing of the used car market, which now provides 4% of its profits. These two British activities will be brought together into one company, headed by Philip Monks, the current CEO of Aldermore. ”

An article by: Jeune Afrique

Author: Gova-Media