Standard Bank in buyout offer for Liberty Holdings

·15 Jul 2021

Standard Bank Group says it has proposed to buy 100% of financial services and property holding company, Liberty Holdings and to integrate Liberty more closely into the greater group.

The deal is subject to shareholder and regulatory approvals and will lead to the de-listing of Liberty and Liberty becoming a wholly-owned subsidiary of SBG. Standard Bank currently owns 54% of Liberty’s issued ordinary shares.

If the transaction is implemented, Liberty’s minority shareholders will receive a cash consideration of R25.50 per share, together with 0.5 Standard Bank shares per Liberty share held.

This represents a premium of 40.5% to Liberty’s 30-day volume-weighted average price prior to the announcement of the transaction, and of 32.6% to the closing price on 14 July 2021.

Standard Bank Group chief executive officer, Sim Tshabalala said: “The integration of Liberty into Standard Bank Group enhances our ability to meet our clients’ financial needs, making possible holistic advice and competitive solutions for them, especially during major transition points in their lives.

“This transaction creates significant opportunities for capital efficiencies and to grow the united group by providing a fully integrated set of client offerings throughout SBG’s operations across Africa.”

The decision has been approved by the boards of Standard Bank Group and Liberty. It was also supported by a preliminary independent fair and reasonable assessment which has been undertaken by an independent expert, Standard Bank said.

The transaction will require the approval of Liberty’s minority shareholders as well as regulatory approval across numerous jurisdictions, including the SARB Prudential Authority, the JSE, the
Competition Commission and the Takeover Regulation Panel in South Africa.

Should Liberty’s minority shareholders approve the transaction, it is expected to be finalised by the first quarter of 2022.