[2008-08-14]  CFC Bank Limited merges
Stanbic Bank Kenya Ltd, a subsidiary of the (“SBK”), Standard Bank Group Limited – Africa’s largest banking group ranked by assets, earnings and market capitalisation - has received the final regulatory approval to merge its operations with CfC Bank Limited in Kenya.

In terms of this transaction, Standard Bank Group will merge its existing Kenyan operation, Stanbic Bank Kenya, with CFC Bank Limited, which includes CFC Bank, Heritage Insurance, CFC Life, CFC Financial Services. CFC Bank is listed on the Nairobi Stock Exchange. At the end of this transaction Standard Bank Group will acquire sufficient shares to give it a 60% shareholding in the merged listed company, which will be renamed CFC Stanbic Holdings Limited.

Commenting on the approval Stanbic Bank’s Managing Director, Mike du Toit stated, “We now have a great opportunity to demonstrate our commitment to the Kenyan economy and to accelerate our growth in Kenya, strengthen our core group of products and services and add even more value to our shareholders’ investment.” Du Toit continued, “CFC Bank has demonstrated a superb record of successful banking since it was founded and all of us at Stanbic are pleased to be merging with them. We believe that Stanbic and CfC share a similar corporate culture and are confident that our affiliation will benefit all of our shareholders, customers, and local communities.”

Du Toit also expressed his gratitude to all the colleagues of both CFC Group and the Standard Bank Group for all the enormous passion, energy and team-work they have put into the merger process.

Commenting on the status of the merger, Madabhushi Soundararajan, Managing Director of CFC Bank, said “We believe the merger will result in a much stronger and fully diversified financial services group with a Pan African reach. This is in the best interests of our customers who should benefit from enhanced product offerings and a full suite of value added products “
Upon completion of the merger, Standard Bank Group will own 164 million ordinary shares in CFC Stanbic Holdings Limited equivalent to 60% ownership. In addition, the following will be enacted:

1. Stanbic Bank Kenya will become a wholly-owned subsidiary of CfC Bank, the listed entity;
2. Standard Bank Group will acquire further shares from the shareholders of Gambit Limited to take its aggregate shareholding to 60%;
3. The banking business of CfC Bank will be transferred to Stanbic Bank Kenya so that CfC Bank will thereafter be the holding company of Stanbic Bank Kenya as well as the other CfC subsidiaries; and
4. CFC Bank will be renamed ‘CFC Stanbic Holdings Limited’ and Stanbic Bank Kenya will be renamed ‘CFC Stanbic Bank Limited”.

About Standard Bank
Rooted in Africa and with strategic representation in key sub-Saharan markets, Standard Bank Group is a regional banking force with a global reach. The Group operates in a range of banking and related finance services and has a wide representation which spans 18 African countries and 20 countries outside of Africa, with an emerging market focus. Standard Bank Group has 709 branches in South Africa and 306 in the rest of Africa and is listed on the JSE Limited.

In addition to its banking operations, Standard Bank Group enjoys a strategic interest in the insurance industry through its control of Liberty Life, one of Africa's leading life offices and financial services groups.

At 31 December 2007, Standard Bank Group had total assets of over R1 191 billion (approximately USD175.0 billion) and employed more than 48 000 people worldwide (including Liberty Life). Standard Bank’s market capitalisation as at 3 April 2008 was R145 billion (approximately USD18.6 billion).
Source: Copyright © CFC Bank Limited.