South African-based Standard Bank Group, considered the largest African banking group by assets with a market capitalization of approximately US$23 billion, has received a nod from Capital Markets Authority (CMA) to increase its stake in listed Stanbic Bank Kenya Limited.
In a notice, Stanbic Africa Holdings (SAHL)-a wholly-owned subsidiary of Standard Bank Group (SBG) Limited, said that it has received approval to acquire a maximum of 23, 024,153 additional shares available at the Nairobi Securities Exchange(NSE)belonging to Stanbic Holdings Plc.
“If successful, SAHL shareholding will increase to its target shareholding of just under 75 per cent of the issued ordinary shares in Stanbic Holdings,” said SAHL.
Standard Chartered is expected to increase its shareholding in Stanbic Bank Kenya, previously known as CFC Stanbic from the current 69.10 per cent to its target of just under 75 per cent by 31st December 2020.
SAHL made its intentions clear in March 2018 when it issued a notice to acquire up to 59,000,000 additional ordinary shares in Stanbic Holdings from other shareholders of Stanbic Holdings by means of a tender offer. At the time, Standard Bank was already controlling 60% of Stanbic.
The offer that would have seen it control up to 75% of the issued share capital of Stanbic Holdings, was not fully taken.
But Standard Bank has managed to raise its stake in Stanbic to 68.01 per cent and to the current 69.10 per cent.
This level is 23 million shares shy of the conglomerate acquiring 75 per cent ownership of Stanbic Bank.
SAHL has received approval from CMA that exempts it from having to make a full takeover offer to acquire the entire issued capital of Stanbic Holdings.
