/ 14 August 2009

Nedbank buys out Imperial Bank

South Africa’s number four bank, Nedbank, said on Friday it had agreed to buy the 49,9% of Imperial Bank it does not already own from Imperial Holdings for R1,8-billion.

Nedbank said it would settle up to 80% of the transaction through Nedbank ordinary shares and the rest in cash.

Imperial and Nedbank each own about 50% of Imperial Bank, an asset financier that provides loans for vehicles and property, and which had net interest income of R1,7-billion as of December 31 2008.

Nedbank currently provides risk management support to Imperial Bank, while Imperial provides access to a network of logistic and transport services in South Africa. — Reuters