 |
|
|
|
|
|
 | Standard Bank acquires majority shareholding in Banco Standard Totta de Mozambique |  |  |
 |
|
8 October 2003
The Standard Bank Group has, through its wholly owned subsidiary, Stanbic Africa Holdings Limited, signed an agreement in Lisbon, Portugal, with Banco Totta & Acores (Totta), to acquire Totta's 55,29% shareholding in Banco Standard Totta de Mozambique SARL (BSTM) for US$ 21,5 million (R148 million - at the current exchange rate).
The transaction increases the Standard Bank Group's shareholding in BSTM from the 40,7% stake it acquired in 1996 to an effective controlling shareholding of 95,98%.
Says Sim Tshabalala, Stanbic Africa Managing Director: "This is a significant transaction given Standard Bank's strategic intent in Africa, both from a retail and wholesale banking perspective."
He says that BSTM, which has 26 branches throughout Mozambique, has established a good reputation as the oldest private sector bank operating in Mozambique. All the branches are networked, enabling transfer of funds between branches. An ATM network has recently also been installed.
As at 31 December 2002, BSTM had total assets of US$ 288 million, with a deposit base of US$ 250 million and a lending portfolio of US$ 53 million. BSTM reported after tax profits of US$ 9,3 million for the year ended 31 December 2002.
"Mozambique has experienced one of the most successful post-conflict reconstructions in Africa. The Mozambique economy has been growing by over 8% in real terms per year over an extended period of time," says Tshabalala.
Although Mozambique was once considered the poorest country in the world, GDP per capita has increased to US$ 1000. Its proximity to South Africa has resulted in a range of major projects that will support continued high levels of growth and result in increased export earnings for South Africa. South Africa is one of Mozambique leading import partners.
"The acquisition gives us the ability to tap into all these opportunities in Mozambique for the benefit of our customers, shareholders and other stakeholders," says Tshabalala.
The transaction is subject to the fulfilment of certain conditions, which include the approval of the transaction by the Boards of Directors of Totta and the Standard Bank Group and the obtaining of the necessary regulatory approvals from the relevant regulatory authorities in South Africa, Mozambique and Portugal. It is expected that these conditions will be fulfilled by 31 December 2003.
|
|
|
|
|
|
|
|
|
|
|
