The UK-based bank agreed to sell its shares to a company in South Africa. The South African financial firm, FirstRand has made an offer price of 313 pence per share.
The offer is likely to be put before the shareholders of Aldermore. However, sources stated that the deal comes recommended by the bank board.
The price per share decided upon, was a 22% premium to Friday’s closing share price. The closing price valued the bank at £1.1bn.
One of the UK’s best known “challenger” banks, Aldermore, has agreed to be bought by a South African financial firm £1.1bn. Aldermore believed that the agreement would allow it to expand its range of products.
The move is definitely set to be a major upgrade for Aldermore, which has already managed to carve a bit of a niche for itself.
The company was founded in 2009 with the aim to challenge the big four High Street banks. The High Street banks had earlier received enormous criticism for their dominant market shares.
The bank currently boasts close to 230,000 customers. The number includes both the bank’s borrowers and savers.
Surprisingly enough, the company does not have any physical branches. Instead it operates online and by phone. It has managed to build its name by lending to small and medium sized business ventures.
FirstRand, the company seeking to acquire Aldermore, plans to introduce car finance and insurance to the company’s portfolio.
Despite the acquisition, Aldermore’s CEO Philip Monks, stated that the bank’s vision would remain unchanged. He stated that the purchase by FirstRand Group would enable them to pursue their original aim of bringing greater “competition” to UK banking.
However, shareholders are yet to agree upon a date to discuss the approving of the deal.