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STANDARD BANK GROUP LIMITED - PROPOSED PREFERENCE SHARE ISSUE

Release Date: 31/05/2004 09:11
Code(s): SBK
Wrap Text

STANDARD BANK GROUP LIMITED - PROPOSED PREFERENCE SHARE ISSUE Standard Bank Group Limited (Incorporated in the Republic of South Africa)(Registration number 1969/017128/06)JSE Code: SBKISIN: ZAE000038873Namibian Share Code: SNB PROPOSED PREFERENCE SHARE ISSUE 1. Standard Bank Group wishes to announce that, following an informal assessment of investor interest in an issue of non-redeemable, non- cumulative, non-participating preference shares, the group will commence a roadshow today regarding a potential issue of these instruments to institutional investors. 2. Assuming sufficient investor demand for such an issue, a private placement will be made during June, followed by a public offer, based on a minimum subscription amount of R100 000, to open in mid-June and close in early July. 3. The following points which will be disclosed during the roadshow to prospective investors are considered to be of interest to shareholders. 3.1 The group is looking to raise cost effective Tier I capital as part of its capital management programme together with providing the company with funding for strategic initiatives. The group is aiming to raise approximately R2 billion preference share capital, but if pricing is acceptable, an issue size of R2.5 billion may be considered. 3.2 The proceeds would enable the group to: - return ordinary shareholder equity via share buy-backs and/or special or increased dividends; and/or
- fund possible empowerment transactions to facilitate Standard Bank"s attainment of Financial Sector Charter direct ownership points. For Standard Bank to achieve the bulk of direct ownership points in terms of the Financial Sector Charter - based
on the current estimated value of South African banking operations - a black empowerment transaction of approximately R4 billion would be required. Depending on the structure of such a deal, preference share capital raised creates flexibility in
designing funding alternatives. 4. Should the abovementioned issue of preference shares proceed, it is the group"s intention to communicate directly with shareholders to invite applications in terms of the public offer. Johannesburg31 May 2004 Lead Sponsor: Deutche Securities SA (Pty) Ltd Sponsor: Standard Bank Date: 31/05/2004 09:11:41 AM Supplied by www.sharenet.co.za Produced by the JSE SENS Department

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