FirstRand has hired Bank of America (BofA) Corp and its own investment-banking arm, Rand Merchant Bank (RMB), as advisers to help it sell its UK-based Aldermore Group and exit the European market, a spokesperson for the South African lender said this week.
The bank, among the continent’s biggest, is using a dual-adviser structure in an effort to widen the pool of potential buyers for the UK-based specialist-banking subsidiary that it bought in 2017.
FirstRand said in April that it would work on “an orderly ownership transition” from Aldermore after it was forced to more than triple how much it set aside to cover compensation for customers over claims they were missold car loans in the UK.Representatives from BofA declined to comment while RMB didn’t respond to queries from Bloomberg.
FirstRand increased a provision to cover such costs by £510 million ($694 million) to £750 million after the UK Financial Conduct
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