OWN CORRESPONDENT, Johannesburg | Thursday
THE biggest black empowerment initiative in South African banking is to be announced by Nedcor, which is selling a controlling stake in Peoples Bank and FBC Fidelity Bank to Western Cape based listed company Brimstone.
Nedcor’s hostile bid for for Standard Bank Investment Corporation was disallowed by government earlier this year, and the company has been seeking partners for its retail banking business.
Brimstone’s main shareholders include African Harvest, Facto Properties and Nedcor Nominees. Nedcor will remain a shareholder in FBC Fidelity-Peoples Bank, which will operate as in independent financial institution geared at the fast-growing mass market. Stanley Stubbs, Brimstone’s financial director, declined to comment on the deal.
However, it is understood the company is leading a black empowerment consortium to acquire the stake, which includes the investment arm of the National Union of Metalworkers of South Africa (Numsa), other trade unions and investment trusts.
Nedcor CE Richard Laubscher said at the release of the group’s financial results last month that one of the key elements in the convergence of banking services is the acquisition of strategic partners to broaden delivery channels, segment the client base, and apply individual risk-based pricing.