/ 10 May 2006

Sasfin buys Mauritian bank from Nedcor

JSE-listed niche specialist banking and financial-services group Sasfin Holdings on Wednesday announced the acquisition of specialist Mauritian registered bank SBM Nedbank International from Nedcor Group for its net-asset value, plus a 5% premium, a total of approximately $24-million.

The acquisition, which is through Sasfin Bank’s Hong Kong registered subsidiary, Sasfin Asia, is subject to regulatory approval. SBM Nedbank International will change its name to Sasfin Bank International (SBI). The purchase price is payable in cash once the conditions precedent have been met.

SBI is registered in Mauritius and has operated as a joint venture between Nedbank and State Bank of Mauritius (SBM) since 2000.

”The joint venture ended recently and Sasfin was offered the opportunity to acquire SBI at its net-asset value, plus a 5% premium. SBI has focused on financing international trade transactions, sourced both within the Nedcor group and through is own client base. In addition, SBI has a healthy deposit book and a small private client business, mostly associated with current account and credit card transactions hosted via SBM,” the statement said.

Sasfin added that SBI’s business synergises ”exceptionally well” with Sasfin’s business finance unit, as it will enable Sasfin to fund its receivables with low-cost deposits rather than more costly inter-bank financing. It will also allow the Sasfin group to issue its own letters of credit as well as permit the Sasfin group to enter into direct spot and forward-exchange contracts.

It will also fast track Sasfin’s international expansion — Mauritius is a low-cost jurisdiction in terms of overheads and taxation.

”SBI’s staff, under the leadership of CEO Gary Patterson, who is well known to Sasfin, is well qualified to manage the business,” the statement added.

Sasfin Group CEO Roland Sassoon said: ”This acquisition is a major milestone in Sasfin’s history. It gives us an international footprint from which we can expand our business, as well use the ability to increase our service offering to our existing client base.

”Apart from increasing Sasfin’s assets, SBI will add to the group’s deposit base, which will allow us to grow our lending businesses significantly. This will, as always, be with the necessary measure of caution that we have traditionally and successfully applied in these areas.”