Aldermore snapped up by African banking giant
Firstrand, Africa’s biggest bank, on Monday all but secured a £1.1 billion takeover of Aldermore, the small-business lender.
Aldermore today said the board backed the 313p-a-share cash bid. Major investors AnaCap, Standard Life and Baillie Gifford — which combined own about 40% of the stock — are supportive.
A third-quarter trading statement showed why FirstRand is so keen. Loans are up 12% to £8.4 billion, customers’ deposits are up 8% to £7.2 billion.
Chief executive Phillip Monks, who will continue to lead the business, said the bidders are “renowned for using technology to disrupt markets”.
Ian Gordon at Investec said: “Aldermore’s pretty glorious two-and-a-half years as an independently listed company appears all but over.”
Shares rose 7.5p to 310p. The bid is 38% above the trading price when the offer first emerged.
FirstRand already owns MotoNovo, a car finance firm, in the UK. Its deputy chief executive Alan Pullinger says FirstRand spent two years studying takeover targets but was “most comfortable” with Aldermore. In the last quarter, Aldermore’s tier one equity, a measure of solidity, rose slightly to 12.1%.
