| Fri 6 Jul 2001, 0:00 | | Sale Of 50,1% Of Imperial Bank To Nedcor Gets Go A |
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IMPERIAL HOLDINGS LIMITED
Johannesburg - Friday July 6, 2001
The Minister of Finance has given his approval for the sale of 50,1% of
Imperial Bank to Nedcor Bank Limited to form a joint venture specialising in
asset-based financing.
In November when the transaction was first announced, it was anticipated
that the bank could achieve an initial asset base of approximately R5-
billion. According to Tak Hiemstra, the chief executive of Imperial Bank,
the bank has been trading successfully in the past six months and assets
already exceed R4,3-billion.
"The growth in assets that we predicted of around 30% per annum for the next
three years should also be achievable, providing that the economy remains
reasonably buoyant."
He said: "The partnership between ourselves and Nedcor is proving to be most
successful and we have already outsourced certain functions such as network
management and our internal audit function to Nedcor, enhancing Nedcor's
critical mass proposition which was a key element of the transaction when it
was first mooted. We have also been collaborating well on credit matters
and now that the formalities are behind us, the bank can really power
ahead."
Nedcor executive director Mike Leeming added that the past six months'
experience of working the Imperial Bank has been positive. "We are
delighted to have received the Minister's approval for the establishment of
the joint venture. As we expected Imperial is generating strong business
flows for the bank from its large base of mobile assets, which include motor
vehicles, trucks and aircraft. The joint venture is well on its way to
becoming South Africa's premier asset based financing bank.
"Imperial Bank has gained access to a powerful retail distribution network
and is able to offer its customers innovative product offerings as well as
access to Nedcor's sound information technology and processing systems on
the same basis as provided to other Nedcor divisions."
Mr Hiemstra said that vehicles represent approximately 25% of Imperial's
around R20-billion turnover, and while the bank has made good inroads into
this market, considerable potential still existed within the group and
without.
"Specific avenues that we are pursuing include vehicle financing through
Imperial's own motor and other vehicle dealerships and an extended aviation
finance operation with innovative deal structuring. This will encompass
small aircraft for the broader African market as well as supporting Safair
in the financing of large aircraft for airlines world-wide."
The deal is effective from January 1, 2001 has now become unconditional. At
the time of the announcement both companies said that the joint venture was
expected to be earnings enhancing for both Nedcor and Imperial as
substantially increased market penetration could be achieved over the medium
term.
The Registrar still has to give his approval on the appointment of the
directors of Imperial Bank but it has been suggested that they will include
Bill Lynch (chairman), Tak Hiemstra (chief executive), Mike Leeming
(alternate - Mark Parker), Eric Molobi and Stuart Morris.
ends
Please note:
Imperial Holdings activities include a wide range of services relating to
motoring, car rental and tourism, transport, trucking, aviation leasing,
logistics and fleet management outsourcing, forklifts, and a comprehensive
related financial services arm supplying banking, short-term insurance and
life assurance. While these services combine to facilitate maximum synergy
between business entities, a decentralised management structure engenders
industry best practice. Management is empowered to develop each business
with entrepreneurship into unique business units within the strength and
support structures of the Imperial group.
Imperial employs 24 000 people at 650 locations in 26 countries and had
total assets of R17,5-billion at December 25, 2000 and its half year
revenues totalled R10,7-billion.
ISSUED BY: PENELOPE GRACIE INVESTOR RELATIONS
ON BEHALF OF: IMPERIAL HOLDINGS LIMITED
FURTHER INFORMATION: PENELOPE GRACIE
CONTACT: OFFICE +27 (11) 447-3301
MOBILE 082-55-77-444
