Login

Lost your password?

Sign Up

Register

Login

Login

Lost your password?

Register

Thursday, May 19, 2022
  • Home
  • Banking
  • Industry & Trade
  • Investing
  • Money Deals
  • Regional Markets
  • Tech & Biz
  • Countries
  • Opinion

Africa's
Investment
Gateway

The Exchange
  • Login
  • Register
Subscribe
This Month's Edition
Previous Editions
  • Home
  • Banking
  • Industry & Trade
  • Investing
  • Money Deals
  • Regional Markets
  • Tech & Biz
  • Countries
  • Opinion
No Result
View All Result
The Exchange
  • Home
  • Banking
  • Industry & Trade
  • Investing
  • Money Deals
  • Regional Markets
  • Tech & Biz
  • Countries
  • Opinion
No Result
View All Result
The Exchange
LOGIN
www.theexchange.africa

Stanbic Holdings CEO Charles Mudiwa. Photo: Stanbic Holdings.

Kenya: Standard Africa receives approval to acquire bigger stake in Stanbic Bank

Standard Africa first announced the intention to purchase shares from willing shareholders in March 2018

by Wanjiku Njugunah
February 21, 2022
in Business
0
Share on FacebookShare on LinkedIn
  • Stanbic Bank majority shareholder Standard Africa Holdings Limited (SAHL) has received regulatory approval from the Capital Markets Authority to further extend the exemption from making a complete takeover
  • Under the exemption, SAHL aims to acquire a maximum of 10.6 million ordinary shares in Stanbic to bring its total shareholding to up to 75.0 per cent of Stanbic Holdings’ ordinary shares
  • SAHL first announced the intention to purchase shares from willing shareholders in March 2018 to acquire 59.0 million ordinary shares at a price of KSh 95.0 per share

Standard Africa Holdings Limited (SAHL) has received regulatory approval from Kenya’s Capital Markets Authority (CMA) to acquire a bigger stake in Stanbic holdings.

Standard Africa Holdings Limited (SAHL), which is the majority shareholder in Stanbic Holdings, said it received regulatory approval from the CMA to further extend the exemption from making a complete takeover.

Under the exemption, Johannesburg Stock Exchange (JSE) listed company aims to acquire a maximum of 10.6 million ordinary shares in Stanbic to bring its total shareholding to up to 75.0 per cent of Stanbic Holdings’ ordinary shares.

SAHL first announced the intention to purchase shares from willing shareholders in March 2018 to acquire 59.0 million ordinary shares at a price of KSh 95.0 per share.

SAHL had acquired 48.4 million shares, translating to a success rate of 82.0 per cent hence the application for an extension.

The move will be the second time SAHL requests an extension to purchase Stanbic’s shares.

SAHL’s shareholding has since increased to 72.3 per cent as of December 2021, from 60.0 per cent in December 2017, with a target of up to 75.0 per cent.

The move by Standard Bank Group through its investment vehicle SAHL to increase its shareholding in Stanbic Holdings affirms the importance of Stanbic Holdings to the larger group and confidence in its future growth.

Analysts from Cytonn Investments say they expect the move to boost investor confidence in the Kenyan Banking Sector, which has continued to rally from a harsh business environment following the COVID-19 pandemic.

Stanbic Bank, a subsidiary of Stanbic Holdings, has continued to post a positive performance, posting an increase in Profit After Tax by 43.2 per cent to KSh 5.1 billion in the third quarter of 2021, from KSh 3.2 billion in a similar period in 2020.

During the period, return on average equity increased to 15.8 per cent from 12.0 per cent.

“In our view, we expect further activity share repurchase and buyback activity in the bourse from companies whose prices and valuations are currently low.”

The analysts also said that the move by the CMA to allow for exemptions from making full takeovers is also commendable as it allows for investors to increase their shareholding by carrying out on-market trading to acquire a higher stake to having to acquire the entire entities.

Seven Kenyan SMEs Selected for Stanbic Bank’s KSh 33m Grant Fund

Contribution to the Kenyan society

In 2021, the bank revealed it had massively contributed to driving Kenya’s economic growth in seven key areas among them education, job creation and enterprise development.

www.theexchange.africa
Stanbic holdings.

In a report, the bank said it restructured loans to the value of KSh 40 billion, extended repayment holiday to 7,203 clients and lowered interest rates saving customers KSh 665million.

On infrastructure, trade and investment, the bank said it issued KSh 1 billion as guarantees in support of transportation infrastructure development.

In the field of trade and investment, the bank provided unsecured short-term financing for trade to Small and Medium Enterprises (SME’s) backed by KSh 1 billion in secured guarantees.

“Over the last year, the bank has been on a deliberate journey to improve the livelihoods of many through the launch of the Stanbic Kenya Foundation. The Foundation has achieved significant milestones along the way and made an impact in Education, Job Creation and Enterprise Development, through the launch of the Accelerate Programme.”

The bank’s programme seeks to position Kenyan businesses for success by providing individuals and enterprises with digital literacy and career development training, as well as funding and access to job markets.

So far, over 21,000 SMEs and individuals have benefited from the programs and are able to position their businesses better in a digital world.

Stanbic said the feat was achieved through a Public-Private Partnership between the Stanbic Kenya Foundation, the Ministry of Industrialisation, Trade and Enterprise Development and Microsoft Kenya.

Through their Financial Fitness Academy (FFA), the bank has supported individuals and SMEs to understand how to better manage their wealth.

The bank partnered with Microsoft and established the e-learning platform for community training and up-skilling people who have lost jobs due to COVID-19.

Stanbic Bank, GIZ, partner to accelerate growth of 700 MSMEs post covid-19 pandemic

Tags: bank acquisitionsCapital Markets AuthorityFeaturedKenyan banksStanbic Bank HoldingsStandard Africa BankStandard and Stanbic Bank

STATE OF ECONOMY - GET THE REPORT

ASSESSING EAST AFRICA

Loading...

Wanjiku Njugunah

Wanjiku Njuguna is a Kenyan-based business reporter with experience of more than eight years.

Related Posts

Congo joins the EAC (www.theexchange.africa)
Business

What does it mean for regional trade, investment after DRC became EAC’s 7th Member State?

May 18, 2022
www.theexchange.africa
Business

Technology: Liquid Intelligent acquires Israeli tech firm to expand its digital solutions offering

May 9, 2022
www.theexchange.africa
Business

Kenya: President Kenyatta Increases Minimum Wage by 12 Per Cent

May 2, 2022
Next Post
Professor Mohamed Chtatou

Russia and the Maghreb: What future geostrategic perspectives?

Aga Khan Hospital will start offering quality care treatment to qualifying needy patients at no cost in Tanzania and Kenya. www.theexchange.africa

Aga Khan Hospital to offer qualifying groups cost free services

www.theexchange.africa

Kenya: Millions of Kenyans in drought hit counties to receive government relief

Please login to join discussion




This months edition

May Edition

Features

EdTech role in African development
Tech & Business

EdTech’s role in African development

by Kanyali Muthui
May 16, 2022
0

Due to the pandemic, the topic of innovation in education has never been more crucial.  While most developed countries moved...

Read more
investment in African science and technology
Tech & Business

Investing in Africa’s science and technology: Where are we now?

by Kanyali Muthui
May 16, 2022
0

The continent’s digital revolution can largely be driven by building the necessary skills for the short- and long-term future, and...

Read more
Fintech revolution in Africa
Tech & Business

The Fintech Revolution in Africa’s FX Markets

by Kanyali Muthui
May 11, 2022
0

With over 548 million registered mobile money users in sub-Saharan Africa, increased internet access and readily available mobile money solutions,...

Read more
www.theexchange.africa
Countries

US – Nigeria Trade Relations: An Overview

by Wanjiku Njugunah
May 2, 2022
0

Nigeria is currently the United States' 54th largest goods trading partner, with US$7.8 billion in total goods trade as of...

Read more
A previous conference for African Insurtech sector. The Insurtech boom is deepening insurance uptake in Africa. www.theexchange.africa
Tech & Business

Insurtech boom deepening the uptake of insurance in Africa

by june njoroge
May 2, 2022
0

Kenya-based Pula is another distinguished insurtech making waves in the continent. It provides small scale farmers with agricultural insurance and...

Read more

News

Banking
Industry & Trade
Investing
Money Deals
Regional Markets
Tech & Biz
Opinion

Countries

Kenya
Tanzania
Uganda
Burundi
Rwanda
Southern Africa
Ethiopia

More

My Account
Contact us
Advertise
About us
Help Center

Subscribers Center

E-paper
Premium Stories
Education Rates
Corporate Subscriptions
Weekely Newsletter

  • My account
  • About us
  • Advertise
  • Contact
  • Privacy Policy
  • Refund Policy – The Exchange
  • Sitemap

No Result
View All Result
  • Home
  • Banking
  • Industry & Trade
  • Investing
  • Money Deals
  • Regional Markets
  • Tech & Biz
  • Countries
  • Opinion
  • Login
  • Sign Up
  • Cart

© 2021 The Exchange - Powered by MediapixManaged by Supported by Digihandler,

Welcome Back!

Login to your account below

Forgotten Password? Sign Up

Create New Account!

Fill the forms below to register

All fields are required. Log In

Retrieve your password

Please enter your username or email address to reset your password.

Log In