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Absa Group Limited
(Incorporated in the Republic of South Africa)
(Registration number: 1986/003934/06)
("Absa Group")
Share code: ASA
Issuer code: AMAGB
ISIN: ZAE 000013389
ABSA COMPLETES PSG INVESTMENT BANK TRANSACTION
Absa confirmed today that the final step in the acquisition of PSG Investment
Bank (PSGIB) has been completed with the payment of R1 096 032 787 to PSGIB
shareholders on Monday 31 March 2003. The amount is made up of payments by Absa
(R 953,5 million), the PSG Group (R 47,6 million) and a further contribution by
PSGIB (R 95 million).
In terms of the sale, Absa effectively acquired the major portion of the assets
and liabilities of PSGIB. PSG Investment Bank will delist from the JSE on 1
April 2003
The acquisition boosts Absa Corporate & Merchant Bank"s asset base, particularly
in specialized finance and investment banking, and enables it to grow its market
share in what is currently perceived to be a difficult trading environment.
"Absa Corporate and Merchant Bank is pleased with the mix of assets and
liabilities that we have acquired after obtaining the necessary regulatory and
shareholder approvals to have completed this significant acquisition for the
bank," says Absa Deputy CEO, Rupert Pardoe.
Though the legal entities of PSGIB (PSG Investment Bank Limited) and PSGBH (PSG
Investment Bank Holdings Limited) will now be integrated and deployed within
Absa Corporate and Merchant Bank, certain of the assets of PSGBH were acquired
by the PSG Group and will continue trading as PSG Capital Pty (Ltd).
The transaction was announced in August 2002 soon after the demise of various
small banks in South Africa such as Saambou and BoE.
After the completion of a full due diligence in September 2002, the deal was
sanctioned by the South African Reserve Bank, the Competition Commission, the
JSE and all shareholders alike. The transaction was sanctioned by the High Court
of South Africa (Witwatersrand Local Division) on Tuesday, 18 March 2003.
"The transaction realised value for all parties. PSGIB shareholders received
72,13 cents per share in addition to the capital distribution of 25 cents per
share in June 2002, says Andre la Grange, Group Chief Executive of PSG
Investment Bank Holdings Limited and Managing Director of PSG Investment Bank
Limited until 31 March 2003.
"This realised net asset value in the company for them. The PSG Group acquired
assets which support their business plans and their operating activities and
realised cash of which part will be distributed to PSG shareholders. In its
turn, Absa acquired the legal entities with assets that will enhance our market
share and add to the bank"s substantial balance sheet."
La Grange, who joined Absa in October 2002 as head of Corporate and Merchant
Bank"s Specialised Finance Division, is responsible for the final integration of
PSGIB into Absa Corporate and Merchant Bank now that the transaction is
completed.
Ends
Issued by: Julie MacLiam
Absa Media Services
Tel: (011) 350 4588
Cell: 083 256 0717
For more information, please contact: Liezl Squier
Account Executive : Absa Corporate and Merchant Bank
Group Communication and Public Affairs
Tel : (011) 350-4291
Fax : (011) 350 - 3104
Cell : 083 407 6898
liezls@absa.co.za
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