South Africa-based Standard Bank Group (SBG) has launched a buyout offer to take full control of Liberty Holdings for $728.75m.
SBG currently owns only 54% stake in Liberty Holdings.
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Established in 1956, Liberty Holdings specialises in life, investment, health, business, properties, and advice related services.
The bank noted that the deal ‘is a natural progression in this special relationship, increasing our ability to collaborate to provide the best financial service offerings to our clients through the most effective means.’
The deal will allow SBG to form an integrated financial group, enhance it abilities to meet its clients’ financial needs and offer competitive solutions to them.
Upon completion, Liberty Holdings’ minority shareholders will get 0.5 Standard Bank shares for every share held along with a cash consideration of approximately $1.76.
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By GlobalDataFurthermore, Liberty Holdings will be de-listed and operate as a wholly-owned subsidiary of SBG.
SBG CEO Sim Tshabalala said: “This transaction creates significant opportunities to find for capital efficiencies and to grow the united group by providing a fully integrated set of client offerings throughout SBG’s operations across Africa.
“We are creating a more united Group that will bring our banking, insurance and asset management businesses much closer together to create something really special. This will be a whole that will be much greater than the sum of its parts.”
SBG and Liberty Holdings boards have already approved the deal. However, it is subject to shareholder and regulatory approval.
Liberty Group CEO David Munro said: “SBG’s banking, private client asset management and short-term insurance capabilities will complement Liberty’s strength in long term insurance and asset management, enhancing the competitive position of Liberty’s offerings while facilitating the creation of a united and formidable competitor in financial services in Africa, at scale.”
