Stanbic Africa Holdings Set to Buy 59 Million Shares from Stanbic Holdings Plc

Stanbic Africa Holdings Limited (SAHL) has announced the intention to purchase through a Tender Offer an additional 59 million shares of Stanbic Holdings Plc.

The 59 million shares are equivalent to 15 percent of the equity of Stanbic Holdings Plc. Currently, SAHL holds 60 percent of the equity in Stanbic Holdings.

If the transaction is successful, SAHL will control 296,192,981 shares (75 percent stake).

The proposed tender offer price is 95 shillings representing a 13.8 percent premium to the price at the announcement (83.50 shillings).

“We expect the price to rise to 95 shillings with more offers than bids. The offer is open to shareholders on the register as of today,” said analysts from Genghis Capital.

In other news, secondary market turnover dropped to 2.5 billion shillings on Thursday with a further drop expected in today’s session.

The overnight rate ended at 4.1 percent as the market remained flush. We expect most of this to be mopped up through T-bill primary settlements and quarterly taxes due on 20^th March.