The proposed deal will create “sustainable growth and value for shareholders,” Standard Bank CEO Sim Tshabalala told a media briefing. Aligning the banking, insurance and asset management businesses of the two companies will create a whole which is “greater than the sum of its parts,” he said.
Standard Bank is taking the opportunity of Liberty’s low market valuation to try to extend its leading position in African financial services. Tshabalala sees a “massive opportunity” in insurance in the rest of Africa given low penetration rates of around 1%.
Giving Liberty’s insurance salesforce access to Standard Bank’s continent-wide banking presence will move beyond the companies’ existing “arm’s length” distribution agreement and lead to revenue growth, he said. “We want to enjoy the benefits of fully owning and fully integrating” Liberty’s insurance business.
The bank is offering 0.5 of its
There's more to this story
Get unlimited access to our exclusive journalism and features today. Our award-winning team of correspondents and editors report from over 54 African countries, from Cape Town to Cairo, from Abidjan to Abuja to Addis Ababa. Africa. Unlocked.
cancel anytime
Already a a subscriber Sign In
