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 Debt consolidation – Explained

Dealing with debt can be daunting. If you’re struggling to keep track of which store account to pay next and weighing up which credit card is more important to settle first, you may have considered debt consolation. At Justmoney, we’ve decided to get down to the basics and explain what this entails and what impact you can anticipate on your credit score.  

Read more

3 Vehicle financing options compared – which is cheaper?

Buying a car is a considered a milestone, both in life and financially. Unless you’re able to fork out the cash, many opt for financing. But often the excitement to drive it off the showroom floor overshadows the need to check if you’re choosing the most-suited option. To help you make the best-informed decision we compare available vehicle financing structures in South Africa.

Read more

Splitwise: Split the bill not the friendship

Collecting your friends’ debt to you can be draining. You don’t want to ruin your friendship with them, and it can also be extremely awkward. I don’t know how many times I have written, deleted, and rephrased texts, reminding people to pay what is due to me.

Read more

Stokvel-friendly accounts – which one is fair?

The stokvel economy is approximately worth R49 billion in South Africa. This is according to the National Stokvel Association of South Africa (Nasasa). Altogether 24% of these stokvels are in Gauteng, while only 6% are in the Western Cape.

Read more

Sign Up

To our weekly newsletter for advice you can bank on

Deals

Save with 10X investments

Price: Free
When: Until 30 June
Where: Online

Sanlam Cumulus Investment Plan Limited Offer

Price: From R2,500
When: Limited Period
Where: Nationwide

Roman's Pizza Special-Single Large Pizza

Price: R69.90
When: Until 31 July
Where: Nationwide