Nedbank CEO Mike Brown said that the transaction is a significant step towards providing a "one bank" solution to clients, especially to South African corporate entities.
The transaction also supports Ecobank’s corporate development programmes, including the recent Oceanic Bank acquisition in Nigeria.
The arrangement further provides Nedbank with subscription rights which can be exercised between 24 and 36 months period to become a 20% shareholder in Ecobank.
Ecobank can also provide for the possibility of establishing a reciprocal shareholding in Nedbank, a review of the geographical alignment of businesses across the combined footprint and reciprocal board representation of one director each that are subject to the required approvals.
Eco bank has a presence in 32 African countries providing wholesale, retail, investment and transaction banking services and products to governments, financial institutions, multinationals, international organizations, medium, small and micro businesses and individuals.
