Nedbank’s R1.8 billion sale

South Africa’s Nedbank Group has agreed to sell its 21.2% stake in pan-African lender Ecobank to the private investment vehicle of financier Alain Nkontchou for $100 million, it said on Friday.

Nedbank said this month that it wanted to sell the stake, citing regulatory uncertainties, potential higher capital requirements and plans to focus on Southern and East Africa.

Ecobank’s operations in Central and West Africa are exposed to some economies that have been pressured by unfavourable currency swings since Nedbank bought the stake in 2014.

Nedbank’s statement on Friday said that it had signed a sale and purchase agreement with Bosquet Investments Limited, Nkontchou’s investment vehicle, on Wednesday and the disposal was expected to complete in the fourth quarter of this year.

Ecobank’s chief executive told Reuters this month that Nedbank’s decision to divest had nothing to do with Ecobank’s performance and would not affect its long-term growth plans.

“This transition opens the door for a new shareholder and board members who can potentially bring fresh perspectives and support to our strategy,” said CEO Jeremy Awori.

Regulatory approvals are still needed for the sale to proceed, but there are no other conditions for the deal, Nedbank said.

• Reporting by Colleen Goko and Anathi Madubela