Nedcor Limited - Announcement Regarding The Finali
Of Fbc Fidelity Bank
NEDCOR LIMITED
(Incorporated in the Republic of South Africa)
Registration number: 1966/010630/06
Share Code :NED
ISIN Code : ZAE000004875
ANNOUNCEMENT REGARDING THE FINALISATION OF THE ACQUISITION OF FBC FIDELITY
BANK
On 18 May 2000 Nedcor Limited ("Nedcor") announced the acquisition out of
curatorship of FBC Fidelity Bank Limited ("FBC") with effect from 31 July
2000. The net asset value at that date would be adjusted to reflect the
fair value of assets and liabilities ("the final net asset value") as
determined by Nedcor over the intervening 11 months.
Due to the uncertainty as to the fair values of FBC's assets and liabilities
prevailing at 31 July 2000, certain erstwhile shareholders of FBC, in
conjunction with the South African Reserve Bank, agreed to maintain deposits
with FBC ("the retained deposits") that would be utilised to the extent
required by Nedcor Bank Limited ("Nedcor Bank") should the final net asset
value prove to be negative. Furthermore, TFS Investments Limited (formerly
FBC Fidelity Bank Holdings Limited) ("TFSI") was granted an option to buy
any advances at their values as written-down by Nedcor. TFSI, through its
nominee Thebe Investment Corporation (Proprietary) Limited, has exercised
this option to buy loans with a face value of R54m and net asset value of
R4m.
After obtaining the agreement of the parties referred to above and allowing
TFSI sufficient time to exercise its option, Nedcor is able to announce that
the final net asset value at 31 July 2000, as agreed to by the parties to
the transaction, amounted to a deficit of R427,7m. Accordingly, the
retained deposits of R425m have been fully utilised to offset this deficit
in Nedcor's hands.
Salient financial information on Peoples Bank as at 1 July 2001 post the
integration of FBC and the banking operations of the Peoples Bank and
NedEnterprise divisions of Nedcor Bank Limited (which integration still
awaits Section 54 approval in terms of the Banks Act, 1990) is as follows:
Peoples Bank Rm
Shareholders' funds 663
Indebtedness to Nedcor Bank Limited 2 607
Net advances 7 167
Total assets 7 659
Further outstanding contingencies could result in an increased goodwill
amount, but these are not material to Nedcor.
Johannesburg
7 December 2001
Sponsor
Merrill Lynch
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