Aldermore share price jumps 20 per cent on takeover speculation

Caitlin Morrison
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Aldermore shares have shot up (Source: Getty)

Challenger bank Aldermore today confirmed that it has received an offer for the entire issued and to be issued share capital of the company from South African lender FirstRand.

The bank has been offered 313p per share, and said it is "likely to recommend a firm offer at this level".

The firm said in a statement to the London Stock Exchange: "Aldermore and FirstRand are in preliminary discussions about the details of the possible offer, which is subject to a number of standard conditions."

Read more: Challenger bank Aldermore is on the lookout for deals (not with Co-op Bank)

Under Takeover Panel rules, FirstRand now has until 5pm on 10 November to either announce a firm intention to make an offer for Aldermore, or to announce it doesn't intend to proceed with the bid.

Aldermore added: "There can be no certainty that any firm offer will be made or as to the terms on which any offer might be made. "

In May, City A.M. reported that Aldermore was on the lookout for deals. The challenger's chief executive, Phillip Monks, said he anticipated there would be opportunities for merger and acquisitions in the months ahead.

“We’ve got a really strong organic growth engine here and we can achieve all our plans organically,” Monks said. “But I think there will be opportunities coming up over the next year, and I think they’ll be in the form of, potentially, portfolios, which will be accretive to shareholder returns, or [joint ventures] that we might want to embark on for various reasons. Or indeed there may just be hard M&A.”

Read more: Brexit schmexit: Aldermore reports profit boost despite EU vote uncertainty

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