Stanbic Africa Holdings pays over N60bn for additional 1.1bn shares in Stanbic IBTC Holdings

Insurance

Friday, June 1,2018

Stanbic Africa Holdings Limited, the majority shareholder in Nigeria listed Stanbic IBTC Holdings Plc has increased its stake in the financial institution through an “off-market” transaction valued in excess of N63billion.

By acquisition of an additional 1.141billion ordinary shares Stanbic Africa Holdings succeeded in increasing its total percentage shareholding in Stanbic IBTC Holdings Plc by 11.35percent to 64.44percent.
Before this transaction, Stanbic Africa Holdings owned 53.09 percent stake in Stanbic IBTC Holdings Plc, First Century International Limited owned 7.43percent, while other investors owned 39.64percent.
Currently, Stanbic IBTC Holdings has 10.049billion shares outstanding valued at N463.280billion.
With a shareholding of 64.44percent in Stanbic IBTC Holdings Plc, Standard Bank has increased its controlling stake in the institution.
The transaction was consummated at a premium price of N53.75 was managed by Renaissance Capital (RenCap).
Stanbic IBTC Holdings is a member of Standard Bank Group. Standard Bank Group is Africa’s largest banking group ranked by assets and earnings and has been in business for over 150 years.
Stanbic IBTC Holdings Plc share price fell on the Nigerian Bourse by N1.4 or 2.95percent to N46.1 on Thursday May 31, 2018.
The Nigerian Stock Exchange (NSE) has been notified of this transaction in a May 31, 2018 notice signed by Chidi Okezie, Company Secretary, Stanbic IBTC Holdings Plc.
Stanbic IBTC Holdings released its first-quarter (Q1) 2018 results posting impressive performances across key line items.
In the period ended March 31, Stanbic IBTC Holdings Plc reported Gross Earnings growth of 22percent, to N57.38billion from N47.02billion in Q1’2017.
The company closed the first-quarter period with profit before tax (PBT) of N26.69billion against N18.62billion in Q1’2017, representing an increase of 43.3percent. Total assets went up to N1.41 trillion from N1.39 trillion in December 2017.
Olalekan Olabode’s team of equity research analysts at Vetiva Capital Management had revised their price estimates on Stanbic IBTC Holdings Plc to reflect the better than expected performance across.
“The price of execution is interesting in view of where market price is. Stanbic IBTC did 48percent Return on Equity (RoE) in Q1,” a market source said.
He worried over Stanbic IBTC Holdings free float which was already an issue as the premium placed on the stock will widen the free float deficiency and may push stock price higher.
“Stanbic IBTC delivered strong results in the first quarter of 2018 in demonstration of its growth aspirations as the country’s economic environment continues to improve. The 22 percent growth in gross earnings was driven by 38 percent increase in non-interest revenue while net interest income remained stable year-on-year. The growth in non-interest revenue was driven by a significant growth in trading income and fee and commission revenue,” Yinka Sanni, Chief Executive of Stanbic IBTC Holdings Plc said.