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JD Group - ABSA Bank, JD Group and Thebe Investment Corporation announce
formation of new company
JD Group Limited
(Incorporated in the Republic of South Africa)
(Registration number 1981/009108/06)
ISIN: ZAE000030771
JSE code: JDG
(`JD Group`)
ABSA BANK, JD GROUP AND THEBE INVESTMENT CORPORATION ANNOUNCE FORMATION OF NEW
COMPANY
Absa Bank, JD Group and Thebe Investment Corporation have formed a new financial
services group to provide mass market consumers with improved access to personal
loans and other related financial products on more favourable terms than
currently available in the market.
The new group comprises a holding company with two wholly owned subsidiaries, a
consumer finance company and a debtors management company. Thebe Investment
Corporation will hold an initial 10% of the shares and will be able to increase
its holding to 25% within the medium term. Absa Bank and the JD Group will hold
the remainder of the shares in equal proportion.
The new group will bring financial services closer to the consumer by initially
offering personal loans through outlets in JD Group stores, namely the Bradlows,
Russells, Joshua Doore and Price `n Pride chains. Other Absa financial
services products are planned to be available at a later stage. According to
Jenny Tyobeka, Absa`s Flexi Banking Services` managing executive, this is a
further example of the innovative approach Absa has adopted to taking banking to
the people, in this case by making financial services more accessible to them
through the consumer channel.
The operation came into being on 1 May 2005 and will start trading from 24 May
in 12 JD Group stores. During this first phase, products, systems and procedures
will be tested on a small scale to ensure that adjustments for market needs and
demands are made, before the concept is rolled out countrywide. The eventual aim
is to offer a full range of financial products and services from 500 stores
nationwide.
Jan Bezuidenhout, director: corporate services at JD Group, commented `We are
delighted to be involved in the creation of this new company with strong
shareholders, since both Absa as South Africa`s leading retail bank and Thebe as
our BEE partner, complement JD Group`s contribution.` He says that JD Group`s
credit expertise and extensive footprint will allow the new venture to bring
financial services closer to consumers, with the benefit of added convenience on
more favourable terms than they currently have available to them in the market
place.
`The new group`s shareholders are pooling all their experience and capabilities
in the mass middle market and are taking a cautious approach to growth, to
ensure long term sustainability and full regulatory compliance,` says Thebe CEO
Vusi Khanyile, who will be the non-executive chairman of the new group.
The group has appointed Bert Griesel as the managing director of the new
operation. The new group will be an efficient operation that uses the
shareholders` existing infrastructure, technology and expertise to keep costs
down, enabling the group to offer affordable financial products to the mass
middle market. All three shareholders will nominate members to the board of
directors of the group and will dedicate senior management and staff to the
operation. The name of the new group will be revealed following the completion
of administrative processes. The new group will be regulated by the Micro
Finance Regulatory Council (MFRC).
Johannesburg 5 May 2005
Enquiries
Baird`s Renaissance: Francois Baird or Michael Acott on
011 504-4000
College Hill: Louise Brugman or Nick Williams on
011 447-3030
Date: 05/05/2005 04:11:38 PM
Produced by the JSE SENS Department
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