HSBC first in line for stake in Nedbank

first_img HSBC yesterday confirmed it is in exclusive talks with insurer Old Mutual to acquire up to 70 per cent of the shares in Nedbank, South Africa’s fourth largest lender, in a bid to aggressively ramp up its offering in the country.The parties have not disclosed the terms of a potential deal, though analysts yesterday said that the acquisition would likely be at a premium of anything up to 20 per cent of Nedbank’s current market value, meaning that HSBC could be in line to pay out almost £5bn for the stake.Old Mutual’s acceptance of the deal is dependant upon it receiving approval from the country’s central bank, South African Reserve Bank (SARB), to transfer £1.5bn of the proceeds over to the group balance sheet to pay down its debt.However, the firm appeared confident of gaining consent for its plans, with chief executive Julian Roberts saying Old Mutual would not have gone into exclusive talks without hope of regulatory approval.Analysts at Bank of America Merrill Lynch said: “We note that this alone would be sufficient to meet the group’s objective to pay down £1.5bn of debt by the end of 2012. This is significant in that not only does the group now look very comfortably capitalised, but there will be significantly less need to retain earnings going forwards – a positive for dividends and other shareholder cash return mechanisms.”The rest of the funds would be reinvested in South Africa and other emerging markets, Old Mutual said.For HSBC, which beat rivals such as Standard Chartered in bidding for the stake, the move will provide it with a launching pad to properly break into the rapidly-growing African market.The bank has traditionally lagged its peers on the continent, making a deal of this magnitude even more crucial to its strategy of capitalising on emerging markets growth. Its customers in Asia, where chief executive Michael Geoghegan relocated earlier this year, are increasingly showing an appetite for striking deals in Africa, Share HSBC first in line for stake in Nedbank whatsapp LAZARDFINANCIAL ADVISER TO HSBCIT’S shaping up to be quite a silly season for the investment banks, which have been shocked out of the usual August lull to advise on the M&A boom currently gripping the City.Advising on the deal of the day yesterday, HSBC’s proposed acquisition of a controlling stake in South Africa’s Nedbank from Old Mutual, were an impressive roster of large and small investment banks.Lazard was on HSBC’s side, having been hired by the bank almost two months ago to evaluate a potential deal. Its advice has clinched HSBC exclusivity in the deal talks, fighting off stiff competition from the likes of fellow emerging markets-focused giant Standard Chartered.Old Mutual has also brought in the big guns, with retained broker and financial adviser Bank of America Merrill Lynch, blue-blooded bank Rothschild and boutique Lexicon Partners all playing their part on the deal for the insurer. BoA Merrill Lynch’s team was led by head of international M&A Carlo Calabria, head of European financial institutions Henrietta Baldcok and Marc Heilner, the bank’s head of corporate and investment banking on the ground in South Africa.Nedbank, meanwhile, has engaged Credit Suisse. whatsapp KCS-content center_img Monday 23 August 2010 8:29 pm Show Comments ▼ by Taboolaby TaboolaSponsored LinksSponsored LinksPromoted LinksPromoted LinksYou May LikeMoneyPailShe Was A Star, Now She Works In ScottsdaleMoneyPailNoteabley25 Funny Notes Written By StrangersNoteableyZen HeraldThe Truth About Why ’40s Actor John Wayne Didn’t Serve In WWII Has Come To LightZen HeraldBetterBe20 Stunning Female AthletesBetterBeCrowdy FanShe Didn’t Know Why Everyone Was Staring At Her Hilarious T-ShirtCrowdy Fanautooverload.comDeclassified Vietnam War Photos The Public Wasn’t Meant To Seeautooverload.comAtlantic MirrorA Kilimanjaro Discovery Has Proved This About The BibleAtlantic MirrorTotal PastThe Ingenious Reason There Are No Mosquitoes At Disney WorldTotal PastElite HeraldKate Middleton Dropped An Unexpected Baby BombshellElite Herald Tags: NULLlast_img read more

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Hills sells trackside portfolio

first_img Topics: Finance Sports betting Horse racing Regions: UK & Ireland Finance Hills sells trackside portfolio William Hill will focus on its racetrack betting shops after selling its entire portfolio of trackside pitches.The bookmaker has sold 82 stalls to the owner of leading racetrack operator Sid Hooper in a deal the Racing Post suggests is worth around £2m (€2.3m/$2.6m).The sale brings to an end almost a century of trackside operations for William Hill, whose founder began offering markets at the Northolt Park course in 1933.The move comes just three months after William Hill massively expanded its racetrack betting shop portfolio, increasing its number by 34 to 41 through deals with Jockey Club Racing (JCR), Go Racing Yorkshire and various independents.Trading director Terry Pattinson said today’s trackside sale is the latest action in the development of its on-course strategy.In a statement he said: “We have reviewed whether our rails operation continues to makes commercial sense.“Our focus now is to provide on course customers with a full retail experience on the racecourse, so it makes sense to move away from our rails operation, hence, we have agreed a sale with Racecourse Pitches.”William Hill is the lead sponsor of ITV Racing and gives its name to races at Ascot, Ayr and Ripon. Its recent deal with JCR establishes the firm as the exclusive betting shop provider at Jockey Club courses, replacing Betfred in the role.Sid Hooper, managing director at John Hooper, said: “We have been looking for expansion opportunities for some time and we are thrilled to have acquired the William Hill on-course portfolio of pitches.” AddThis Sharing ButtonsShare to LinkedInLinkedInShare to FacebookFacebookShare to TwitterTwitter Tags: Race Track and Racino 22nd October 2018 | By contenteditor Operator to focus on racecourse betting shops after sale of 82 stalls Subscribe to the iGaming newsletter Email Addresslast_img read more

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