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Aldermore agrees to ?1.1bn takeover by South Africa's FirstRand 

Challenger bank Aldermore has agreed to be taken over by South African lender FirstRand in a deal that gives it a ?1.1bn value two years after listing.  
FirstRand has offered 313p a share for the group, which has been run by former Barclays banker Phillip Monks since 2009 when it was set up as an alternative to traditional banks, after approaching it for the first time earlier in the summer. 
The board was not looking for a buyer when it was approached, Mr Monks said, adding that he did not expect the deal to result in job cuts. 
FirstRand's UK arm Motonovo, a Cardiff-based motor finance company, will be folded into Aldermore and Mr Monks will keep his role. 
However if the deal goes ahead he will be forced to sell his stake in the business - he owns 3.4m shares, worth around ?10.6m - as part of the terms. 
Aldermore agrees to ?1.1bn takeover by South Africa's FirstRand 

Aldermore's primary focus is lending to small businesses – such as an independent bakery. The bank deals mainly in asset finance, invoice finance and buy-to-let mortgages. 
Mr Monks joined the business just after the financial crisis, when he found himself out of a job after more than two decades at Barclays. Aldermore was the first UK bank owned by a private equity firm, which put it under pressure to grow faster than some of its rivals. AnaCap now owns around 25pc of the business after selling down a stake earlier this year.   
Mr Monks told The Telegraph that just after the business floated in 2015 "you could hear the laughter almost as I walked out the door" when he was canvassing investors about starting a new bank in 2008. 
The bank, which now has 230,000 customers and 1,000 members of staff, said the backing of FirstRand - South Africa’s largest financial services institution by market capitalisation - would help it expand its product range. It primarily focuses on lending to small businesses. 
The 313p-a-share offer represents a 22pc premium on the 256p closing price on October 12, when the talks first emerged. The deal is expected to go to a shareholder vote next month and also needs regulatory approval. 
The news has not affected the lender's search for a new chairman, Mr Monks said, adding that a shortlist for potential candidates has now been put together. Aldermore announced a year ago that its chairman Glyn Jones would be leaving next February. 
The FTSE 250 firm also issued a trading update for the three months to September 30 on Monday, with new loans rising 12pc to ?8.4bn, driven by ?2.4bn in new lending. "When I talk to my SME customers they're broadly positive [about the future]," Mr Monks said. 
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