[2008-02-25]  Chinese bank completes Stanbic deal
THE Industrial and Commercial Bank of China has concluded requirements to acquire 20 per cent stake in Stanbic bank's mother company Standard Bank at a tune of Shs8.3 trillion ($4.8 billion).

Mr Daniel Nsibambi, the communication manager of Stanbic Bank Uganda said 2 commanding banks had fulfilled all of the regulatory and shareholder requirements for the transaction between them to proceed.

"This deal will result in ICBC purchasing a 20 per cent stake in Standard Bank, valued at R36.7 billion (Shs8.3 million). The equity investment is the largest foreign direct investment into South Africa and is a landmark transaction for Africa, South Africa and Standard Bank," Mr Nsibambi said.

The transaction started took effect last week and the last day to trade in Standard Bank shares in order to receive the scheme consideration is 22 February 2008. "The transaction will be finally implemented on 3 March 2008."

Under the scheme, ICBC will acquire 11.11 per cent of the aggregate issued ordinary share capital of Standard Bank Group from existing Standard Bank Group ordinary shareholders at a price per share of Shs30,728 (R136).

Standard Bank will issue new shares for which ICBC will subscribe, which will represent 11.11 per cent of the existing share capital, according to a communiqué from the bank.

Although it is too early to tell how Stanbic Bank Uganda (SBU) and its customers will benefit from this landmark partnership, Mr Nsibambi noted that as part of the Standard Bank Group, SBU is now well positioned to serve as a gateway to the growing trade and investment between China and Africa, Uganda in particular.

China is Africa's third largest trading partner with forecasters predicting that trade between the two continents could increase to well over Shs172 billion ($100 billion) by 2010, from Shs94.3 billion ($55 billion) in 2007.


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