Kensington announced to the stock market today that it had reached agreement on the terms of a recommended offer for Kensington.
Last week Kensington confirmed it was in advanced takeover talks. It issued a trading statement on May 22 warning that the offer is likely to be below it present value.
Under the terms of the offer, each Kensington shareholder will receive 0.7 Investec shares plus a special dividend of 26 pence for each Kensington share, valuing each Kensington share at 519.5 pence per share based on an Investec share price of 705 pence per share on 29 May 2007.
Kensington Group chief executive Alison Hutchinson says: “The combination of Investec’s strong balance sheet, access to lower cost of funding and capital markets expertise, together with Kensington’s brand, established distribution, innovative product range and reputation for excellent service will create a powerful combination for the growing specialist mortgage market.”
Investec is an international specialist banking group that has five core business divisions: Investment banking, capital markets, private client activities, asset management and property activities. 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 look forward to welcoming Kensington, and its employees led by Alison Hutchinson, to the
Investec group. 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.”