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 Do you need credit to survive Easter?

Easter weekend is here and with it the expectation of celebration. While there is nothing wrong with this, it often means spending more money than you bargained for.

 

Read more

Young woman building a legacy brick by brick

When her dad passed away, Siyasanga Ngcongca, an internal auditing graduate, took over the family business. Ngcongca Construction, as her company is known, is a service provider to five insurance companies, handling building and commercial claims.

Read more

Can you evict paying residential tenants?

One of the most common reasons for wanting to evict a tenant is non-payment of rent. But there are many other situations that landlords may encounter. These can range from damaging property and breaching contract, to being reported as a continuous disturbance by neighbours.

Read more

How one entrepreneur designed her financial future

From as early as Cannon remembers, she recalls her grandmother seated behind a sewing machine. Through this influence she was sewing her own aprons and doll dresses by the time she was ten, and by the time she was 16, she started designing and make her own clothes.

Read more

Sign Up

To our weekly newsletter for advice you can bank on

Deals

Woodstock Grill and Tap Monday Burger Madness

Price: R75
When: Mondays
Where: Cape Town

Active Sushi Special

Price: R199
When: From Tuesday to Sunday
Where: Cape Town

Let's Teach and Travel TEFL Online Course

Price: R2,400
When: Daily
Where: Online