Alex Forbes consortium raises offer(2)

The consortium buying Alexander Forbes, a South African financial services group, has increased its offer despite having agreed the deal three months ago.

A consortium led by Actis, a UK-based buy-out manager focussed on Africa, has raised its bid for Alexander Forbes, a South African financial services group, to 17 rand from 16.25 rand, according to statement.

The consortium includes South African private equity group Ethos, Harbourvest Partners, two Canadian investment funds and a group of black South African investors.

Shares in Alex Forbes gained 3.13 percent to 16.50 rand by 0905 GMT compared to 16.00 rand before the news and against a 0.7 percent rise in the midcap index.

The firm did give a reason for the higher offer in a statement.

The higher offer would increase the total value of the deal to 8.79 billion rand from the previous 8.4 billion, according to calculations in a Reuters’ report. The statement did not give a total value for the deal, which includes funding for liabilities.

Last December the firm said the offer had been finalised and on January 24 South Africa’s Competition Tribunal said it had unconditionally approved the deal.