By Ian Walker
Nedbank Group Ltd. (NED.JO) said Thursday it's exercising its
option to buy a 20% shareholding in Ecobank Transnational Inc.
(ETIT.AB) for $493.4 million.
The South African bank was offered rights to subscribe for the
shares as part of a $285 million financing to Ecobank back in
December 2011. The two banks had formed strategic alliance in 2008,
providing a "one-bank experience" to their clients across the
largest banking network in Africa, comprising more than 2,000
branches in 39 countries.
Nedbank is buying 4.51 billion shares in Ecobank for 10.93 cents
a share. It has nominated its chief operating officer, Graham
Dempster, to sit on Ecobank's board. Ecobank will also be entitled
to a position on Nedbank Group's board, but has yet to nominate a
candidate.
British insurer Old Mutual PLC (OML.LN), a majority shareholder
in Nedbank, said it welcomes the move.
"This investment demonstrates our commitment to Ecobank and is a
further deepening of Nedbank's strategic alliance. It is a
significant step in the Old Mutual Group's ambition of becoming
Africa's financial services champion," the firm's chief executive,
Julian Roberts, said.
-Write to Ian Walker at ian.walker@wsj.com
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