| Thu 14 Apr 2011, 16:17 | | FSR - FirstRand Limited - Announcement relating to discussions between |
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FSR
FSR
FSR - FirstRand Limited - Announcement relating to discussions between
Firstrand and Sterling Bank Plc
FirstRand Limited
(Registration number: 1966/010753/06)
Share code: FSR
ISIN: ZAE000066304
("FirstRand")
ANNOUNCEMENT RELATING TO DISCUSSIONS BETWEEN FIRSTRAND AND STERLING BANK
PLC
1. INTRODUCTION
Shareholders of FirstRand are advised that, in line with its strategic
intent to be the African financial services group of choice, FirstRand is
considering potential acquisition opportunities in certain African
countries which are expected to produce strong domestic growth and are well
positioned to capture the trade and investment flows between Africa and
Asia. In line with this strategy, FirstRand has entered into discussions
with Sterling Bank plc ("Sterling") Nigeria which, if successfully
concluded, will result in a subscription or acquisition by FirstRand of a
majority shareholding in Sterling (the "Proposed Transaction").
2. RATIONALE
Nigeria is a key market for FirstRand`s African expansion given the strong
underlying growth prospects in the Nigerian financial services sector.
FirstRand is interested in investing in a well established banking platform
in Nigeria. Sterling has a national footprint in Nigeria with 99 branches
nationwide and it passed the Central Bank of Nigeria`s special audit of the
Nigerian banking sector in 2009.
3. CONDITIONS TO THE PROPOSED TRANSACTION
Should the discussions progress to a binding offer, such offer will be
subject to a number of conditions precedent including inter alia the
approval by the South African Registrar of Banks and the Central Bank of
Nigeria.
4. FURTHER ANNOUNCEMENTS
A further announcement will be made should the discussions either progress
to a formal offer or terminate.
While the Proposed Transaction is strategically significant, FirstRand does
not believe that the Proposed Transaction, if successfully concluded, will
have a material effect on the FirstRand share price.
14 April 2011
Merchant Bank and Sponsor to FirstRand
RAND MERCHANT BANK (A division of FirstRand Bank Limited)
Legal Advisors to FirstRand
DENEYS REITZ INC, through its AFRICA LEGAL division, and UDO UDOMA & BELO-
OSAGIE
Date: 14/04/2011 16:17:01 Produced by the JSE SENS Department.
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