British bank Aldermore Group Plc (ALD.L) is in preliminary talks over a possible 1 billion pound takeover offer from South Africa’s biggest lender by value, FirstRand (FSRJ.J).
Aldermore said on Friday it had received an “indicative proposal” of 313 pence per share in cash.
The Board of Aldermore has indicated to FirstRand that it is likely to recommend a firm offer at this (313 pence) level.
FirstRand could not immediately be reached for comment.
FirstRand already has a fast-growing London-based car finance business, Motonovo Finance.
Britain’s so-called challenger banks, such as Aldermore, emerged after the financial crisis to fill a gap in small-business lending.