Stanbic Bank announced last November that it has reached an agreement to acquire Investec Bank and its tiny loan book of P239 million made up of “high net worth clients”.
The Bank of Botswana said in a statement on Wednesday that under the deal reached by the two commercial banks, Investec Bank will surrender its licence and its assets and liabilities will be merged with those of Stanbic.
The move is aimed at re-positioning Stanbic against its rivals in the retail and wholesale market.
“The acquisition is a clear demonstration of the Standard Bank Group’s commitment to Botswana.
“We run a significant wholesale banking business in Botswana with a small retail presence. However, we see further retail opportunities in (that) market even though that space is fiercely competitive,” Managing Director for Stanbic Bank Africa Sim Tshabalala has said.
Danies Kennedy, Stanbic Botswana Managing Director said Investec will be taken over as a going concern and that over time the two banks will be merged. “This implies that the assets and liabilities of the 100 percent subsidiary of Investec will be assumed by Stanbic Botswana,” he said.
However, Kennedy stated that a detailed human resource study still has to be done on the existing Investec employees.
“Only when this exercise has been completed will any decision relating to the staff be made. However, our intention is that wherever possible, the Investec employees will be absorbed into Stanbic Botswana,” he said.
Stanbic’s predatory move followed the opening of its assets management division early last year.
Stanbic which is the leading unit trust manager and the third largest asset management company in South Africa said it has made a deliberate decision to the target Botswana market. Stanbic has got the largest foot print in Africa operating in 18 countries besides the Americas, continental Europe, Asia and the Middle East where it has both retail and corporate operations.
“We have made a deliberate decision to target the Botswana market. The intention is to manage institutional pension funds through our pula fund,” general manager of Stanbic asset management, Leina Gabaraane has said.
“We are highly committed to Botswana. Under the leadership of Managing Director Tebogo Naledi, Investec Asset Management has successfully won more than P1 billion in new pension fund mandates,” he said.
He added that Investec Asset Management is mulling over plans to establish a unit trust company in Botswana. He said Investec Asset Management is committed to living up to the goal of being a top international investment management firm serving southern Africa.
