Shares in one of South Africa’s leading banks, Standard Bank, closed 3.75% higher yesterday at R109.45, this after the bank issued a cautionary statement yesterday.

Under the rules of the Johannesburg Securities Exchange (JSE), a listed firm has to announce a cautionary statement if they are in the process of a deal that could affect more than 10% of their market capitalisation. This signals that Standard Bank could be involved in a deal of around R4 billion.

Now the question would be, what are Standard Bank planning? Some believe that the bank is planning to make an overseas acquisition with Russia being a possible target. Standard Bank currently has operations in Russia and may seek to expand there, and the banks head in Russia came out and said that the bank has exciting plans for Russia. Could this be the exciting times he was talking about?

But some believe the bank could be lining up an acquisition within Africa. Maybe they are buying something on the cheap but with a high growth potential?

We will continue to keep an eye on the Standard Bank share during the week and wait to hear of any further announcements by the bank.

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