Absa Capital, South Africa’s leading investment bank, has welcomed The Security Regulation’s Panel (SRP) ruling that Absa Capital’s valuation of the Shoprite Group was independent.
Craig Brewer of Absa Capital says that the Executive Committee of the Panel unanimously dismissed the objection that the valuation by Absa Capital cannot be considered as an independent valuation of the Shoprite Group.
Say Brewer: “Absa Capital was appointed by the board of Shoprite in order to provide an opinion to the board of Shoprite on the terms and conditions of the firm intention to make an offer received by Shoprite.
“We therefore gave a preliminary opinion on 23 November 2006 based on information available to Absa Capital as at that date and resultantly, Absa Capital’s preliminary opinion has not been withdrawn, it has become outdated due to the passing of time.
“The Shoprite circular to shareholders, in which the Absa Capital’s opinion letter would have been set out, was originally due to be issued in December 2006, but as yet has not been issued.
“On receipt of updated information, Absa Capital will update its valuation and opinion taking into account the final transaction agreements, market conditions and other relevant information.”
Note to the editor:
About Absa Capital
Absa Capital, a division of Absa Bank Limited (Absa) and affiliated to Barclays Capital, is a leading South African investment bank with global reach, offering clients financing, risk management and advisory solutions in a wide range of currencies and structures across the globe.