You are here: Home - News -

Aldermore board recommends £1.1bn FirstRand bid

by: Chris Menon
  • 06/11/2017
  • 0
Aldermore board recommends £1.1bn FirstRand bid
The board of Aldermore Bank has recommended a takeover offer from FirstRand, a South African financial services group, that values the British challenger bank at £1.1bn.

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.”

There are 0 Comment(s)

Comments are closed.

You may also be interested in

Business Skills

In this section, we offer short ‘how to’ guides on harder to crack areas of business. From social media, to regulation or niche product areas, we cover it all.


Our journalists interview key industry entrepreneurs, strategists and commentators for day-to-day market insight and a strategic view of where the industry is heading. We offer lessons for success and explore the opportunities for your business

Success in Practice

Here, we share case studies fleshing out best practice to help you decide what could work for your business. Take a look at how others approached complex tasks like launching a new mortgage lender, advising on a new product area or deciding to specialise in another. Learn from others mistakes and triumphs.


Each week, we ask top mortgage and property commentators with a unique perspective to examine a key news headline, market move or regulatory or political issue.


Vote in our weekly poll here. It’s your chance to tell us what you think and be heard on the top news stories of the week. Review our archive to find out what your industry really thinks and all our coverage of the results.

Top Comments

Be part of the conversation on Mortgage Solutions. We want to hear from you. We have a tool called Disqus to tell us which stories get the most comments each week. Every Friday, the team picks the most thoughtful or opinionated contributions from our readers to enjoy again. Don’t forget to share your favourite stories from the site on social media to keep the conversation going.
  • RT @robjupp: Great day yesterday for donations to @MortSleepOut. With Gift Aid, we are now close to £17,000. It would be great to get to £2…

Read previous post:
Philip Hammond Chancellor
Autumn Budget 2017: Reformed Stamp Duty could rescue property market, legal firm warns

Stamp duty must be reformed in the Autumn Budget or house prices will soar amid a stagnating property market, according...