Alexforbes agreed to repurchase 28.7% of its shares from Prudential Financial for R6.75 per share. The R2.52bn repurchase will be funded through cash and R2.1bn of external debt. Management expects the transaction to be earnings and value accretive for remaining shareholders. The shares will be cancelled, reducing shares in issue to 926.7m, while finance costs rise approximately R145m annually.
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