Absa Group Limited - Further Cautionary Announceme
Absa Group Limited - Further Cautionary Announcement
Absa Group Limited
(Incorporated in the Republic of South Africa)
(Registration number: 1986/003934/06)
JSE code: ASA
Issuer code AMAGB
ISIN code: ZAE000013389
(`Absa`)
FURTHER CAUTIONARY ANNOUNCEMENT
Shareholders are referred to previous cautionary announcements released on SENS,
the JSE Securities Exchange News Service, the last one appearing on 4 April 2005
regarding discussions relating to the possible acquisition of a majority stake
in Absa by Barclays Bank PLC (`Barclays`).
Subsequent to 4 April Barclays and Absa have been engaged in extensive
discussions regarding the terms of a possible transaction. The parties have also
had a series of meetings with large shareholders during which the possibility of
a partial offer to acquire 60% of Absa shares at a price of R79.00 (plus a final
dividend for the year ended 31 March 05 estimated at the time to be
approximately R1.80) was discussed.
Barclays and Absa have also estimated that, should a transaction proceed, it is
expected that the combination would produce significant synergies by
accelerating the strategic objectives of both parties improving Absa`s pre-tax
profits by approximately R1.4bn per annum four years after completion (after
incurring implementation costs of approximately R1.8bn over the first three
years).
Barclays and Absa are considering the feedback from Absa shareholders and will
now determine whether a transaction would receive the requisite support from
shareholders on terms acceptable to Barclays, at which stage Barclays will
revert to the regulatory authorities for final consideration.
Shareholders should note that this announcement does not constitute a firm
intention to make an offer by Barclays. Shareholders are advised that should an
offer be made it may or may not be at a premium to the prevailing market price.
Shareholders should continue to exercise caution when dealing in Absa securities
until such time as a further announcement is made.
Johannesburg
25 April 2005
Financial advisers
Goldman Sachs
Merrill Lynch
Absa Corporate & Merchant Bank
Legal advisers
Webber Wentzel Bowens
International legal advisers
Linklaters
Lead sponsor
Merrill Lynch
Co-sponsor
Absa Corporate Merchant Bank
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