FirstRand shares rise after group makes R2bn bid for Aldermore

FIRSTRAND’S bid to take over UK-listed Aldermore received a major boost yesterday when the group said it would recommend that its shareholders accept the R2 billion cash offer from Africa’s biggest lender by market value.

FirstRand chief executive Johan Burger said the recommendation would breached a major hurdle in the bid.

Burger said: “This transaction is the latest step in FirstRand’s strategy of protecting and building shareholder value.”

FirstRand offered 313 per pence per share, valuing the UK specialist lender to £1.1 billion (R20.4 billion).

The offer represented a premium of 22 percent to Aldermore’s closing price on the day in which the the transaction was first announced in October.

FirstRand said their strategy was to achieve a more diversified revenue profile across products, segments and geographies.

Currently, it said 4 percent of their earnings was generated by the group’s UK business MotoNovo, one of the largest providers of motor finance for second-hand vehicles in the European country.

Burger said the offer would allow FirstRand to locate more financial resources to their operations in Africa.

FirstRand said it recognised Aldermore’s management team had a deep understanding of the business environment in which it operated.

FirstRand shares rose 0.76 percent on the JSE yesterday to close at R52.79.