The unexpected bidder for specialist lender the Kensington Group has been revealed as South African investment bank Investec.
Kensington has announced to the stock market it has reached an agreement on the terms of a recommended offer.
Under the terms of the offer, each Kensington shareholder will receive 0.7 Investec shares plus a special dividend of 26p for each Kensington share, valuing each Kensington share at 519.5p per share based on an Investec share price of 705p per share on 29 May.
Peter Birch, Kensington chair, says: “This offer secures the future of Kensington within a stronger group with complementary capabilities and at a fair price, and enables shareholders to share in the value to be created by the combination.
“I am confident that Kensington’s attractive franchise will prosper under Investec’s ownership, and that it will be well placed to capture the considerable opportunities in the specialist lending arena.”
Upon completion of the offer, Kensington will become part of Investec’s capital markets division.
Investec chief executive Stephen Koseff says: “The proposed acquisition of Kensington is in line with our stated objectives and reinforces our successful Capital Markets business.
"We are confident that under our ownership, the Kensington franchise will be reinvigorated and that our combined businesses will be well placed to benefit from
the growth of the non-standard mortgage market.”
Investec managing director Bernard Kantor adds: “We have been impressed by the enthusiasm of Kensington’s management and staff, who share our vision of creating a distinctive, specialist banking group delivering superior service and products to our customers.”
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