Standard Bank Group (SBG) has made an offer to buy the remaining 46% of shares in Liberty Holdings that it does not already own.
Should the transaction be finalised, Liberty will delist from the JSE and become a subsidiary of SBG.
The independent board of Liberty has indicated it will recommend that shareholders of the company vote in favour of the deal.
SBG and Liberty have long enjoyed a strategic relationship, with the bank as a majority shareholder, as well as a successful bancassurance arrangement.
The institutions are confident the proposed transaction will further improve their ability to collaborate in offering top-class financial services to clients.
Liberty’s strategy of becoming a human-augmented platform business to make clients’ financial freedom possible naturally complements SBG’s purpose of being a client-centred, digitally-enabled and Africa-focused integrated financial services provider.
If the transaction is implemented, Liberty’s minority shareholders will receive a cash consideration of R25.50 apiece, together with 0.5 Standard Bank shares for each Liberty share held.
The deal is expected to be finalised by the first quarter of 2022, subject to approval by shareholders and other entities, such as the competition authorities and the JSE.
SBG CEO Sim Tshabalala says the integration of Liberty into the group enhances its ability to meet clients’ financial needs, making holistic advice and competitive solutions more available.
Additionally, the merger will create opportunities for capital efficiencies and growth across Africa.
SBG currently operates in 20 African countries.
“SBG’s banking, private client asset management and short-term insurance capabilities will complement Liberty’s strength in long-term insurance and asset management, enhancing the competitive position of Liberty’s offerings, while facilitating the creation of a united and formidable competitor in financial services in Africa, at scale,” adds Liberty CEO David Munro.