Absa Bank Limited Announces Finalisation of Repurchase Offer and Preference Share Dividend Declaration

Strategic Insights -

Absa Bank Limited has announced the finalisation of its repurchase offer to redeem all preference shares, in accordance with a Scheme of Arrangement approved by preference shareholders. As a result, the Preference Shares will be delisted from the Main Board of the Johannesburg Stock Exchange. Additionally, the company has declared a pro-rata preference dividend of 2,970.68493 cents for eligible shareholders who remain preference shareholders on the scheme record date. This dividend will be paid on July 21, 2025, and will satisfy the solvency and liquidity test for 12 months after payment.

Key Takeaways:

  • Absa Bank Limited has finalised its repurchase offer to redeem all preference shares through a Scheme of Arrangement approved by preference shareholders.
  • The Preference Shares will be delisted from the Main Board of the Johannesburg Stock Exchange.
  • A pro-rata preference dividend of 2,970.68493 cents has been declared for eligible shareholders who remain preference shareholders on the scheme record date.
  • The dividend will be paid on July 21, 2025, and will satisfy the solvency and liquidity test for 12 months after payment.
  • The company accepts full responsibility for the accuracy of the information contained in the announcement.
  • J.P. Morgan Equities South Africa Proprietary Limited acted as the independent transaction sponsor, while White and Case Inc. served as the legal advisor, and BDO Corporate Finance Proprietary Limited acted as the independent expert.

Statistics:

  • 4,944,839 Preference Shares are in issue.
  • The Pro Rata Preference Dividend has been declared out of income reserves.
  • The local Pro Rata Preference Dividend tax rate is 20%.
  • The gross local Pro Rata Preference Dividend amount is 2,970.68493 cents per Preference Share.

Sources:

  • Johannesburg Stock Exchange announcement issued by Absa Bank Limited on July 4, 2025.
  • Circular distributed to preference shareholders dated May 2, 2025.
  • Firm intention announcement released on the Stock Exchange News Service ("SENS") on April 17, 2025.
  • Result of the Scheme Meeting released on the SENS on June 3, 2025.
  • Strate, the electronic settlement and custody system used by the JSE, applicable salient dates for the payment of the Pro Rata Preference Dividend.