KEY POINTS
- Nedbank sells 21.2 percent Ecobank stake to Bosquet Investments.
- The deal is set to close in the fourth quarter.
- Ecobank says the divestment won’t alter its growth plans.
Nedbank Group Ltd. has agreed to sell its 21.2 percent stake in Ecobank Transnational Inc. to Bosquet Investments, the private investment vehicle of financier Alain Nkontchou, for $100 million.
The transaction marks the South African bank’s pullback from West and Central Africa as it concentrates on Southern and East African operations.
Nedbank trims African footprint
The Johannesburg-based lender said it signed the deal on Wednesday, with completion expected in the fourth quarter pending regulatory approvals.
Nedbank announced earlier this month it was looking to dispose of the stake, citing regulatory uncertainty and the prospect of higher capital requirements.
Ecobank’s presence in more than 30 African countries includes markets hit hard by currency swings in recent years, which have weighed on the value of Nedbank’s investment since it acquired the holding in 2014.
Ecobank plays down impact
Ecobank Chief Executive Officer Jeremy Awori said the decision had nothing to do with the bank’s performance and would not derail its expansion plans.
The change in ownership, he said, could bring new perspectives to the board as the lender pursues its long-term strategy.
According to Reuters, Bosquet Investments, which Nkontchou controls, will take over one of the largest cross-border banking stakes on the continent, inheriting both Ecobank’s regional reach and its exposure to some of Africa’s most volatile economies.
