Standard Bank to Take Over Liberty Holdings, Announces Buyout Offer

Standard Bank to take over insurer Liberty Holdings in full with current shareholders to receive cash and shares worth around $728 million

The Standard Bank of South Africa says it has made a proposal to acquire insurer Liberty Holdings.

The leader currently has a 54 per cent stake in Liberty Holdings.

In a statement, Standard Bank said that it has enjoyed a strategic relationship with Liberty, thanks to a “highly successful and valuable bancassurance arrangement”. It now wants to offer “an increasingly wide range of financial and associated services”.

In the proposed transaction, Liberty shareholders are being offered R25.50 in cash per share, together with 0.5 Standard Bank shares per Liberty share held.

Standard Bank Group CEO Sim Tshabalala said: “The integration of Liberty into Standard Bank Group enhances our ability to meet our client’s financial needs, making possible holistic advice and competitive solutions for them, especially during major transition points in their lives”. 

“This transaction creates significant opportunities for capital efficiencies and to grow the united group by providing a fully integrated set of client offerings throughout SBG’s operations across Africa,” he said. 

‘We are creating a more united group that will bring our banking, insurance and asset management businesses much closer together to create something really special. This will be a whole that will be much greater than the sum of its parts”.

Liberty Group CEO David Munro said, “The proposed transaction is a strong vote of confidence by SBG in the strength of Liberty’s business, its client franchise, and very importantly its adviser networks and teams of people.

Should Liberty’s minority shareholders approve the transaction, it is expected to be finalised by the first quarter of 2022.

The takeover is subject to the approval of Liberty’s minority shareholders, as well as from financial authorities, including the Reserve Bank and the Competition Commission.