Nedbank Group buys 20% of Ecobank
South African lender Nedbank Group has agreed to buy 20 per cent of Ecobank Transnational.South African lender Nedbank Group has agreed to buy 20 per cent of Ecobank Transnational.
It will pay $493.4 million (€393.6 million) for 4.51 billion shares, the lender said on Thursday (October 2nd) in a joint statement with Ecobank. Nedbank had a right to convert a $285 million loan made to Ecobank in 2011 into an estimated 11 per cent stake, Bloomberg reports.
A second subscription right allowed it to increase its holding in Ecobank to as much as 20 per cent, with a November 25th deadline to exercise the option. This transaction comes after Qatar National Bank bought an 11 per cent stake in Ecobank on September 15th to become its top shareholder.
The deal is estimated to be worth about 36 billion naira (€171.2 million), according to the Financial Times.
QNB bought the shares from
Nigeria's state-owned "bad bank" Asset Management Company of Nigeria (AMCON), which was set up after the 2008 financial crisis to resolve the non-performing loan assets of the banks in the Nigerian economy.
Ecobank owns assets worth over $20 billion, and
a footprint in more than 35 countries with a network of 1,200 branches.