UK firm seeks to raise stake in Stanbic in Sh5.61b deal

Stanbic Africa Holdings Ltd (SAHL) has offered to pay Sh5.61 billion to acquire an additional 59 million shares in Stanbic Holdings Plc subject to regulatory approvals.

According to SAHL, a private limited liability company with a registered office in the United Kingdom, the deal will see it pay Sh95 for every ordinary share to take its shareholding in Stanbic Holdings above the current 60 per cent.

Stanbic Holdings is a Nairobi Securities Exchange-listed financial services group with five subsidiaries - SBG Securities Ltd, CFC Holdings Ltd, CFC Life Assurance Ltd and Stanbic Bank Kenya Ltd. If successful, the transaction will see SAHL increase its stake in Stanbic Holdings to 74.9 per cent.

Takeover bid

However, SAHL has clarified that it does not intend to make a takeover bid and has committed to apply for an exemption from the Capital Markets Authority (CMA).

“The proposed acquisition of additional shares is for the purpose of a strategic investment in a listed company that is tied up with management or any other technical support relevant to the business of such company,” said the SAHL board in a notice.

SAHL made the offer on Wednesday, as the Stanbic Bank share averaged Sh83. The SAHL offer of Sh95 is a premium of 15.7 per cent of volume weighted average price for the last 30 days of trading before the offer. Thursday, the share touched a high of Sh84.

According to SAHL, its offer price of Sh95 includes its right to receive the final dividend of Sh4 per share that the bank’s board has proposed in the 2017 financial year.