Nedcor Limited - Acquisition of interest from Capital One
NEDCOR LIMITED
(Incorporated in the Republic of South Africa)
Registration number: 1966/010630/06
JSE share code: NED
ISIN code: ZAE000004875
(`Nedcor` or `the group`)
NEDCOR LIMITED - ACQUISITION OF INTEREST FROM CAPITAL ONE
As part of Nedcor`s strategic recovery programme, management has undertaken a
review of Nedbank`s alliance arrangements. Although the affected businesses are
operating profitably, it has been mutually agreed that the alliance
relationships with Capital One no longer fit with either company`s overall
business strategy. The board of Nedcor has therefore taken a decision to acquire
Capital One`s interest in the alliance for a net settlement of R170 million.
Nedbank has been operating two alliances with Capital One. The first alliance
covered microlending activities under the Peoples Bank brand. Nedbank is now in
a position to assume control of the microlending businesses and integrate them
into its existing operations. The second alliance relates to the management of
the American Express card business which is operated by Nedbank under licence
from American Express Limited. Nedbank believes that it will be more effective
to operate Nedbank`s Visa/MasterCard business with the American Express business
within the same business unit.
The effective date of the termination of the alliances is 1 July 2004, and the
Capital One management will remain in place until 30 September 2004 to allow for
an efficient hand-over of the business.
For further information contact
Tier 1 Investor Relations
Tel: +27 (0) 21 702-3102
Sandton
9 September 2004
Sponsors to Nedcor
Merrill Lynch South Africa (Pty) Limited
Nedbank Capital
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