Absa Group Limited - Absa Buys Controlling Interest In Angolan Bank
Absa Group Limited
(Incorporated in the Republic of South Africa)
(Registration number 1986/003934/06)
(JSE Code: ASA)(Issuer Code: AMAGB)
(ISIN : ZAE 000013389)
(`Absa`)
11 April 2005
(Embargoed 12:00)
ABSA BUYS CONTROLLING INTEREST IN ANGOLAN BANK
As part of Absa`s strategy to expand its retail footprint on the African
continent, the Group announces the acquisition of a 50 percent stake in Banco
Comercial Angolano (BCA), a financial services provider based in Luanda, Angola.
The 50% stake, that entitles Absa to board and management control of BCA, was
acquired for 7,5 million US dollars. The balance of shares will continue to be
privately owned by Angolan residents.
Absa Group chief executive, Dr Steve Booysen, said the acquisition fitted
perfectly into Absa`s African expansion strategy and was based on a model Absa
had already successfully applied in investments elsewhere on the continent.
Geographically, Angola is strategic as it allows for further consolidation of
Absa`s operations in the Southern African region. At present, Absa has interests
in operations in Tanzania (55%), Mozambique (80%), Zimbabwe (26%) and Namibia
(36,6%).
The increasing business in retail, mineral and trade opportunities in Angola,
present an opportunity for Absa to participate in the financing of such trade
and commodity finance. Angola`s gas and electricity sectors are to be opened to
private investments and the government has similar plans for its water,
sanitation, telecommunications and transport services.
Foreign banks currently carry out a significant portion of the country`s
merchant banking needs and there are major opportunities for Absa within the
Angolan merchant banking context.
BCA currently has four branches in Luanda with four automated teller machines
and a complement of 107.
Absa`s investment will include further development of staff; expansion of the
infrastructure of the bank; alignment of key policies and procedures with that
of Absa as well as a growth in BCA`s business by introducing new products and
services.
Ends
Issued by:
Investor Relations
Absa Group Limited
4th floor, 170 Main Street
Johannesburg
+2711 350-4061/+2711 350-4394/+2711 350-6008
Fax +2711 350-6487
willier@absa.co.za
sues@absa.co.za
yvonneos@absa.co.za
For more information please contact:
Dana Botha
Head: Absa Africa
072 236 2065
Peter Mageza
Group executive director
082 490 7072
Date: 11/04/2005 12:00:04 PM
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