Namibian shareholders acquire Absa’s state in Capricon

Unnamed Namibian shareholders have acquired for an undisclosed amount the Absa Group’s 34.4% stake in local financial group, Capricorn Investment Holdings Limited (CIH), turning Bank Windhoek into the only financial institute wholly owned by locals.
Capricorn announced this week that the deal is effective from 8 November. CIH is now 100% Namibian owned. “Following the acquisition of a controlling interest in Absa by Barclays Plc, the CIH Group and Barclays Group became competitors in the neighbouring countries where CIH has banking interests. This position, as well as the unwillingness of CIH’s Namibian shareholders to relinquish control over CIH, prompted an offer by the Namibian shareholders to acquire Absa’s shareholding in CIH,” said Capricorn Group MD Johan Swanepoel.

Swanepoel said both Absa and CIH emphasised that the transaction did not bring to an end the 25-year relationship between the parties. “Bank Windhoek, CIH and Absa have agreed to forge a strategic alliance and will operate in close collaboration to the benefit of the two group’s customers in Namibia and South Africa. The relationship therefore merely changes from one of shareholding to one of strategic partnership,” said Swanepoel. CIH has, earlier this year, been licensed to operate a commercial bank in Botswana and its banking operation, Bank Gaborones, opened its doors to the public in September 2006. Swanepoel said CIH has also recently acquired a substantial stake in Zambian commercial bank, Cavmont Capital Bank and will play a leading role in the repositioning of that bank in that market.