South Africa-based FirstRand Ltd. has made an indicative proposal to acquire Aldermore Group Plcs entire issued and to-be-issued ordinary share capital for 313 pence per share in cash, the U.K.-based company said Oct. 13.
Based on Aldermore's 344,921,017 shares in issue as of the date of the announcement, the offer values the company's share capital at roughly £1.08 billion. Aldermore said its board has indicated to FirstRand that it is "likely to recommend a firm offer at this level."
The two firms are in preliminary discussions about details of a possible offer, which will be subject to a number of standard conditions, and there can be no certainty that a firm offer will be made.
FirstRand has until 5 p.m. on Nov. 10 to make a firm offer for Aldermore. The deadline may be extended with the consent of the U.K. Takeover Panel.
FirstRand said it had been assessing opportunities to build a "sustainable long-term deposit franchise to fund its strategy to grow and diversify the revenues of its current U.K. business" and that Aldermore "would provide the ideal platform for FirstRand to fulfill this strategy on an accelerated basis."
J.P. Morgan Cazenove and RBC Capital Markets are acting as joint lead financial advisers and brokers for Aldermore. Lazard & Co. Ltd. is also acting as financial adviser for Aldermore, while Linklaters LLP is providing legal advice.