The cash offer is for 313p a share, as first disclosed last month. It represents a premium of 22 per cent to Aldermore’s share price of 256 pence at the close of play on 12 October, 2017 – the day before the initial offer.
The offer price is also 1.8 times Aldermore’s reported Net Tangible Book Value of £607.1m as at 30 September 2017.
Johan Burger, chief executive officer of FirstRand, said: “We are very pleased that the Board of Aldermore, one of the UK’s leading specialist lenders, will be recommending our Offer. The transaction is the latest step in our strategy of protecting and building shareholder value by achieving a more diversified revenue profile and we believe it will provide the platform to fulfil our growth objectives in the UK. It will allow the FirstRand Group to allocate more financial resources to our operations in Africa, whilst diversifying earnings in the UK.
Phillip Monks, chief executive officer of Aldermore, said: “We set out to provide a real alternative that would challenge the status quo in banking and it’s been a remarkable journey. There are now 1,000 colleagues serving over 230,000 customers and together we have built one of the UK’s leading specialist banks, with lending to small businesses and individuals totalling £8.4bn at the end of the third quarter.
“The offer reflects our strong track record of delivery and FirstRand’s confidence in Aldermore to continue delivering on its sustainable growth strategy. Through its own portfolio of leading financial services franchises, the FirstRand Group has demonstrated its ability to successfully integrate entrepreneurial businesses and we believe there is a strong strategic and cultural fit for customers, colleagues and wider stakeholders.”
He continued: “With the backing of FirstRand Group’s considerable resources and wider capabilities, we will be able to accelerate the delivery of our strategy and further expand the products and services we offer customers. Our vision has always been to bring more competition to UK banking, and the support of the FirstRand Group will enable us to continue to do just that.”