Standard Bank: Turning Chinese

By Staff Writer

From Moneyweb, 03 December 2007
By Geoff Candy

ICBC's purchase of a 20% stake in Standard Bank (JSE:SBK) is a done deal.

Ninety-five percent of Standard Bank's shareholders voted in favour of ICBC buying a 20% stake in the bank and for more shares to be issued. This was despite a note being issued by Citigroup to shareholders recommending they reject the offer & hold out for R161.

ICBC is offering R36,7bn or R120 a share (a 15% premium) for the stake. It will buyback 10% of the banks shares at R136/share (a 30% premium to the price when the offer was made) and subscribe to 10% through an issue of new shares at R105.

Shares will now be diluted and Standard directors will buyback an equal number of shares to the ones sold.

The deal will cut Standard Bank's empowerment shareholding to 8,9%, which is below its rivals & the 10% direct ownership requirement of the financial sector charter. The Tutuwa consortium - 16%-owned by Cyril Ramaphosa's Shanduka, 24% by Saki Macozoma's Safika, 40% by staff, and the other 20% by black small businesses - will give up 11,1% of their shares.

Previously the CEO of Standard Bank, Jacko Maree said the blackownership would not be topped up as the bank believes in the concept of "once empowered, always empowered".

The deal will pave the way for Standard Bank to continue expanding and the two companies will look to provide a one-stop shop for Chinese petrochemical companies wanting to set up a new plant in Africa.

Macozoma and ICBC chairman Jiang Jianqing will be joint deputy chairs of Standard Bank

Recent Articles

Featured Keeping your money safe when travelling overseas

Whether it’s for business or leisure, overseas travel offers you the opportunity to see and experience more of the world. However, it does come with risks, and financial fraud is not the least among them.

The differences between assets and liabilities

There are many investments you’ll make in your lifetime, some of them worthwhile, others not so much. It seems reasonable to imagine that solid investments are assets, and their poorly-performing counterparts are liabilities.

How to avoid being a victim of ATM theft

In South Africa, ATM theft is a big problem. We have a look at what you can do to stay safe while using an ATM, and we consider a couple of tips that are worth keeping in mind.

Should you always buy property with a view to sell?

Property is one of the most significant investments you’ll ever make. Not only does it potentially provide you with a home, but it can offer you a source of rental income, or attract a profit if you decide to sell.

Deals

Black Friday at Hotel Sky

Price: R1,050
When: 25 - 28 November 2021
Where: Sandton and Cape Town

Mangwanani African Spa’s Black Friday Deal

Price: From R699
When: 19 - 26 November 2021
Where: Nationwide

Sundowners special at the President Hotel

Price: Available on request
When: Daily
Where: Cape Town


Latest Guide

Guide to debt rehabilitation solutions