The Barclays Africa deal to take over
South Africa's Absa Group has sailed through a crucial moment after the
latter minority shareholders overwhelmingly voted 96 per cent in favour
of the transaction.
The Absa's shareholders did not only
okay the takeover deal but also approved the change of name of the
Johannesburg Stock Exchange (JSE)-listed entity from 'Absa Group
Limited' to 'Barclays Africa Group Limited' to reflect the enlarged
nature of the business.
According to the Barclays Tanzania
(BBT), the change of name would take effect once the transaction closes,
which is expected in the first half of this year, subject to the
required regulatory approvals and fulfilment of other conditions
precedent.
"In respect of Tanzania, the proposed
strategic combination of the majority of Barclays Africa operations with
Absa will only include Barclays Bank Tanzania," BBT said in a release
yesterday. The release added: "Absa Group Limited's majority interest in
National Bank of Commerce (NBC) will be maintained".
This means that BBT and NBC will
continue to operate as two separate and independent entities, with
separate boards and management teams.
Absa Group Chief Executive Maria
Ramos said after the shareholders vote: "This is an exciting and
transformational deal that will create a high-quality franchise in
Africa with a leading network of more than 1,300 outlets and 10,400 ATMs
across ten countries.
"The vote of confidence from Absa's
independent shareholders today is an important milestone in our journey
towards becoming the 'Go-To' bank across Africa." The combined,
JSE-listed business will serve approximately 14.4 million customers and
employ around 43,000 people across ten countries.
Absa Group, listed on the JSE Limited,
is one of South Africa's largest financial services groups offering a
complete range of banking, insurance and wealth management products and
services. The group's business is conducted primarily in South Africa.
It also has equity holdings in banks in
Mozambique and Tanzania, representative offices in Namibia and Nigeria
and Bancassurance operations in Botswana and Mozambique. At December 31,
2012, the Group had 718.2 million shares in issue and a market
capitalisation of R117.79 billion (about 22.497tr/-).
Source: The Daily News, www.dailynews.co.tz, reported by Abduel Elinaza in Dar es Salaam
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