The board of FirstRand Limited has confirmed that it has made an approach to acquire the entire issued and to be issued share capital of Aldermore.
The parent company of South African-based FirstRand Bank said it had been assessing opportunities to build a sustainable long-term deposit franchise to fund its strategy to grow and diversify the revenue of its current UK business.
Aldermore also confirmed that it had recently received an indicative proposal from FirstRand Limited of 313p per ordinary share.
The board of Aldermore has indicated to FirstRand that it is likely to recommend a firm offer at this level.
Aldermore and FirstRand are in preliminary discussions about the details of the possible offer, which is subject to a number of standard conditions.
“There can be no certainty that any firm offer will be made or as to the terms on which any offer might be made,” stated Aldermore.
“This announcement has been made without the consent of FirstRand and the board will keep shareholders updated as appropriate.”
FirstRand added: “The possible acquisition of Aldermore – with its unique operating model, market positioning and strength in deposit taking – would provide the ideal platform for FirstRand to fulfil this strategy on an accelerated basis.”
In accordance with the UK Takeover Code, FirstRand is required by no later than 5pm on 10th November 2017 to either announce a firm intention to make an offer for Aldermore or announce that it does not intend to make an offer.
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