| Fri 30 Aug 2002, 0:00 | | Imperial Bank In Negotiations To Acquire Saambou`s |
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Imperial Bank in negotiations to acquire Saambou`s Planet Finance Division
Imperial Bank, the asset based finance joint venture between Nedcor and Imperial
Holdings, has been selected as the preferred bidder to acquire R 1,1 billion of
Saambou Bank`s Planet Finance Division`s advances and is in the process of
negotiating the details of the transaction with the curator and other
stakeholders.
As a result, Imperial Bank gains gross advances consisting of R510 million in
transport and motor vehicle instalment sales, R425 million in commercial
property finance, R9 million in aircraft finance and a R156 million sundry loan
book as at 30 June 2002 for a consideration of R 838 million. The effective date
will be 1 September 2002.
In addition, Imperial Bank will enter into agreements for the administration and
collection of the remainder of Planet Finance`s assets, totalling R1, 4 billion.
The deal ensures a holistic solution to the affairs of Planet Finance, as all
the assets are either sold or contracted out for collection, and a significant
number of staff are accommodated. To this end, Imperial Bank will retain the
services of some 40 members of Planet`s staff. This will enhance Imperial Bank`s
ability to collect this portfolio of assets and will provide the Saambou Bank
receiver with an optimal solution for the assets not acquired by Imperial Bank.
"Our decision to enter the bidding for Planet Finance was made after a thorough
due diligence investigation, says Imperial Bank CEO, Tak Hiemstra. "We are
satisfied with the quality of the assets to be acquired, most of which will
augment the current asset-based finance activities of Imperial Bank."
Specifically the motor vehicles, aircraft and property assets will add to the
growth prospects of the bank. Imperial Bank`s existing asset base is R7
billion, increasing by 16% to R8,1 billion. Currently, advances comprise of 41%
in motor vehicles through Motor Finance Corporation (MFC), 28% in property
finance, 20% in general aviation finance, and the balance in sundry loans,
investments and advances.
"While the acquisition somewhat expands our product range, Imperial Bank will
remain a niche bank focused on asset based finance," concludes Hiemstra.
Recent consolidations in the banking sector and asset growth brought about by
the acquisition now place Imperial Bank just behind the big four banks and
Investec in terms of assets.
For more information, please contact Kathleen Smith on 011-879 2000 or on 083
326 4581.
Date: 30/08/2002 09:40:52 AM Produced by the JSE SENS Department
