Investec Offers £412m to Buy Stake in Rensburg, Views it as a Good Investment
Investec will pay £412m for the remaining Rensburg stake. South Africa’s bank has given its consent to pay a sum of £412m for the shares that it does not already own in British wealth manager Rensburg Sheppards.
Investec is listed on London and Johannesburg stock exchanges. The deal has been finalized with an offer worth £9 a share from Investec to Rensburg, in order to buy 52 per cent of Rensburg.
According to the terms of the offer, the shareholders of Rensburg Sheppards will be receiving fully paid new shares as a replacement for each full paid-up share of Rensburg. The current share of Investec in the group is 47%. The recommend offer will value each Rensburg share at a premium of 48 percent, which will accelerate the share price from 620 pence to approximately 916 pence.
Stephen Koseff, Chief Executive of Investec, said, “Investec’s wealth and asset management activities have grown strongly in recent times and we believe that Rensburg Sheppards will thrive as part of the Investec Group. We look forward to supporting Rensburg Sheppards and enhancing our strategic position by building an even stronger business in this core area of the market".
Investec is confident that the investment in Rensburg Sheppards will turn out to be a good investment over the period.