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SHARE
17 April 2025
Absa Bank Limited, an Absa Group subsidiary in South Africa, is pleased to announce its firm intention to repurchase its preference shares from the preference shareholders, to be implemented by way of a scheme of arrangement or a standby general offer, subject to regulatory and shareholder approvals.
The proposed repurchase will offer Absa Bank preference shareholders the opportunity to sell their shares for a cash consideration. Absa Bank intends to repurchase preference shares as these types of shares do not qualify as regulatory capital.
The preference shares that are repurchased will be cancelled and delisted from the Main Board of the Johannesburg Stock Exchange.
The proposed Absa Bank preference share repurchase serves the economic interest of the company as it contributes to ongoing efforts to manage the cost of funding. At the same time, the repurchase will provide holders of preference shares with an opportunity to monetise their investment at a significant premium to the traded price, which may otherwise be difficult given low liquidity and trading volumes.
The implementation of the scheme is subject to approvals, including 75% of preference shareholdersā voting rights, in attendance, exercised in support of the scheme at an extraordinary general meeting to be held on 3 June 2025.
Further details regarding the terms and conditions of the repurchase will be provided in a circular to be distributed to shareholders.