Standard Bank Group Limited · JSE:SBK
Standard Bank — Merger or Acquisition (2003)
14 slides from Standard Bank's merger presentation, 2003
Slide 1: Creation of a true Black Economic Empowerment financial services company
Creation of a true Black Economic Empowerment financial services company SIMEKA INVESTMENT SIMEKA INVESTMENTHOLDINGS HOLDINGS
Slide 2: Introduction
Introduction • Transformation is a national & business imperative • Need for a broad-based black economic empowered investment bank recognised • Standard Bank Group identified as ideal partner 2
Slide 3: Presenting a BEE financial services company
Presenting a BEE financial services company • Two Standard Bank assets identified and will be sold to a new empowerment financial services company: • SCMB Securities • Standard Risk and Treasury Management Services (SRTMS) • New empowerment financial services company will be the platform for future
Slide 4: Consortium
Consortium • Nduna Trust - Ronnie Ntuli (29%) • respected advisor to both South African and international corporates and investors • is a past president of the Johannesburg Metropolitan Chamber of Commerce and Industry • Safika (29%) • investment holding company with investments in MTN Group, NAIL,
Slide 5: Management of BEE NewCo
Management of BEE NewCo • Non-executive chairman - Saki Macozoma • CE - Ronnie Ntuli • Consortium will appoint the majority of the board of directors together with the CE • Standard Bank has the right to appoint the balance of the board of directors as well as the COO SIMEKA INVESTMENT HOLDINGS 5
Slide 6: Proposed structure
Proposed structure Standard Bank Consortium 49% 51% BEE NewCo Treasury Corporate Securities* Private Equity** services* Finance** *Standard Bank business re-branded ** New business to be established Independent valuation being completed by Deloitte and Touche SIMEKA INVESTMENT HOLDINGS 6
Slide 7: Why SCMB Securities & SRTMS?
Why SCMB Securities & SRTMS? • Two businesses that can leverage off in- house skills by introducing empowerment • Minimal BEE penetration • Investment banking primarily debt and equity • Two businesses provide NewCo with entrée into these areas • Two businesses provide NewCo with opportunity to star
Slide 8: Support from Standard Bank
Support from Standard Bank Group • Information technology, human resources, risk management, financial management • Access to skills development programmes • Funding - Standard Bank will provide funding to the consortium for the purchase of 51% of NewCo on commercial terms SIMEKA INVESTMENT HOLDINGS
Slide 9: Co-operation
Co-operation • Stock broking execution services • will be provided to Standard Bank Private Bank and SCMB Treasury • Banking licence • not required initially, but when necessary application will be made in consultation with Standard Bank Group • Projects • NewCo and Standard Bank Group will be first
Slide 10: Platform for growth
Platform for growth • BEE NewCo will establish its own private equity and corporate finance divisions • Enable BEE NewCo to capitalise on opportunities likely to arise as a result of: • empowerment credentials • the Standard Bank Group brand • Market research conducted SIMEKA INVESTMENT HOLDINGS 10
Slide 11: Standard Bank's involvement in BEE
Standard Bank’s involvement in BEE • Standard Bank Group took a strategic decision in 1993 to become involved in process of BEE • We have been involved as financier and as merchant bank / corporate adviser • R2bn of BEE transactions financed and advised on R53bn BEE transactions to date • We have ex
Slide 12: Rationale from Standard Bank perspective
Rationale from Standard Bank Group perspective • The Standard Bank Group has been considering ways to introduce empowerment at a shareholder level • Options considered: • Introduction of empowerment at group level • Establishment of a new empowerment bank at an operating level SIMEKA INVESTMENT HOLD
Slide 13: Advantages for Standard Bank
Advantages for Standard Bank Group • Strengthen empowerment positioning of Standard Bank Group • Provides an empowerment partner for future investment banking deals • Participation in a share of increased deal flow in respect of government and parastatal business • Facilitates the development of ful
Slide 14: Conclusion
Conclusion • True broad-based empowerment deal • Support from Standard Bank Group • Recognised and trusted consortium partners Creation of an independent and diversified investment bank that reflects the demographic composition of South Africa in respect of ownership, control and management SIMEKA I