Alexander Forbes sets offer price

The reception area of the Johannesburg Stock Exchange. File picture: Leon Nicholas

The reception area of the Johannesburg Stock Exchange. File picture: Leon Nicholas

Published Jul 7, 2014

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Johannesburg - South Africa's Alexander Forbes Group on Monday set the offer price for its planned share listing at up to 8.05 rand a share, valuing the pension manager at as much as R10.5 billion.

Alexander Forbes, which was taken private by a group of investors including buyout firm Actis in 2007, also said it plans to raise 330 million rand in fresh capital when it lists on July 24.

The company said in a regulatory filing that it had priced the planned offer, which is not open to the public, at between 6.90 and 8.05 rand a share.

Its shareholders will sell nearly 389 million shares, while it will issue just over 44 million new shares to help bolster its capital position.

The total sale represents about a third of the company, Alexander Forbes said.

The offer price values Alexander Forbes at around 10.5 billion rand, based on the top end of the range, according to Reuters calculations.

The private pension manager has already agreed to sell an additional 34 percent stake to the world's top insurance broker, Marsh & McLennan.

Founded more than 75 years ago Alexander Forbes, is one of South Africa's biggest private pension managers.

After the 2007 buyout some shares remained listed in Johannesburg via a special purpose entity called Alexander Forbes Preference Share Investments.

In line with the listing, the 28.4 percent stake of the company housed in the special purpose vehicle will be spun off to existing shareholders in the entity, which include fund managers Allan Gray and Stanlib.

Those shares were down 4 percent at 8.5 rand at 09:13 SA time.

Deutsche Bank, Morgan Stanley and FirstRand's Rand Merchant Bank are arranging the listing and the offer. - Reuters

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