Nigeria: Ecobank's Former Chairman Buys Nedbank's 21 Percent Stake for $100 Million

The transaction will reach consummation once regulatory approvals are in place, with the proposed disposal expected to be executed in the last quarter of the year.

Alain Nkontchou, a former chairman of Lome-based Ecobank Transnational Incorporated, acquired the 21.2 per cent interest held by Nedbank in the group, ending South Africa's fourth biggest lender's nearly 17-year partnership with the pan-African bank.

The Cameroonian financier, founder of London-based asset manager Enko Capital, completed the share purchase deal through Bosquets Investment Limited, his private investment vehicle.

The investment is worth $100 million, Nedbank said in a Friday statement.

"I am very pleased to have come thus far with the Ecobank Group, and I look forward to supporting the institution in advancing its strategic objectives of growth, transformation and returns," Mr Nkontchou said in a regulatory filing by the corporation at the Nigerian Exchange.

"Having been part of the bank's journey for many years, initially joining as a member of the Board of Directors, then serving as ETI Chairman, Alain has demonstrated unwavering dedication, strategic vision, and leadership that have significantly contributed to the bank's achievements, bringing the bank to an era of profitability," said Jeremy Awori, Ecobank's CEO.

Nedbank is reviewing its investment strategy on the continent in order to concentrate on areas offering the promise of growth, with focus now shifting to the Southern African Development Community and East Africa regions.

Its financials for the year to June classified its Ecobank Group's stake as a non-current asset held for sale.

The transaction will reach consummation once regulatory approvals are in place, with the proposed disposal expected to be executed in the last quarter of the year. Nedbank said Bosquet Investment has made available the required security as proof of funds for the share purchase.

Last week, Ecobank Group announced that it had sold its 96 per cent holding in its Mozambican unit to FDH Bank Plc of Malawi.

Ecobank operates in thirty-five countries in Africa. Its net profit for the first six months of the year jumped 23 per cent to $278.8 million, compared to a year ago. Total assets rose to $32 billion, up from $28 billion at the end of last year.

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