Capital Markets Authority
Exchange Rules
Express Kenya
Nairobi Securities Exchange
South Africa
Stanbic Holdings
Standard Bank
Unga Group

SA bank seeks Sh2.6bn stake in Kenya’s Stanbic Holdings

South Africa’s Standard Bank is seeking to buy an extra 6.9 per cent stake worth about Sh2.6 billion in Stanbic Holdings after failing to raise its shareholding in the local subsidiary to 75 per cent in its first attempt.

The multinational had planned to buy a total of 59 million shares in the Nairobi Securities Exchange-listed firm at Sh95 each, valuing the offer that ran from May 21 to July 3 at Sh5.6 billion.

Shareholders controlling 31.6 million shares worth Sh3 billion accepted the offer, raising its stake to 68.01 per cent from the previous 60 per cent.

Standard Bank now says it has applied to the Capital Markets Authority (CMA) to be allowed to buy more shares in the open market to hit its target.

“Standard Bank remains interested in raising its shareholding subject to receiving the requisite approvals by purchasing shares from those shareholders who may wish to sell their shares in the future,” the multinational said.

“Consequently, Standard Bank has applied to the Authority to extend the exemption granted by the Authority … to allow Standard Bank to purchase additional ordinary Shares on the exchange in accordance with the applicable Exchange Rules for a further period.”

The multinational’s bid represented a 14.4 per cent premium to Stanbic’s closing price of Sh83 on March 14, the day before the offer was disclosed.

The share purchase was completed in two phases, with the first one running from May 21 to June 11 and which saw acceptances amounting to 23.5 million shares or a six per cent stake.

The second phase, which was hurt by a subsequent rally in the company’s share price, closed on July 3 with only eight million shares or a two per cent stake tendered.

Stanbic’s stock rallied to highs of Sh96 early last month as the multinational’s offer signalled the company’s fair value to investors.

Standard Bank becomes the latest acquirer to register sub-par acceptance at the NSE where the proposed buyouts of Unga Group and Express Kenya collapsed last week.

Share this Post