[2007-10-29]  Chinese bank buys stake in Standard Bank
STANDARD Bank has announced a major strategic partnership with Industrial and Commercial Bank of China Limited (ICBC), the world’s largest bank by market capitalisation, in terms of which ICBC will become a 20 per cent shareholder in Standard Bank Group.

Standard Bank operates in Zambia as Stanbic Bank Zambia limited.

According to Standard Bank Group statement, the deal will result in a R36.7 billion or approximately US$5.5 billion equity investment into the bank, which is the largest foreign direct investment into the country and is a landmark transaction for Africa, South Africa and Standard Bank.

Standard Bank Group chief executive officer, Jacko Maree, said the partnership between the two banks was attractive, as each party brought numerous complimentary benefits to the relationship.

“Both banks can benefit through the creation of new revenue streams, access to the new partners expertise and sharing distinctive local market knowledge and we will be able to enhance services to our domestic customers as we seek to do business in Africa,” he said in a statement released in Lusaka yesterday.

The foreign ownership of the South African bank currently at around 25 per cent, will increase to 40 per cent after the proposed transaction, leaving the bank still majority South African owned.

The transaction is subject to the approval of the South African Registrar of Banks, The China Banking Regulatory Commission, The Johannesburg Stock Exchange, the Standard Bank and the ICBC Shareholders.

ICBC chairman Jiang Jianqing said the bank had been seeking opportunities to expand its international business particularly Africa given strong trade linkages and long standing friendship between China and South Africa.

Mr Jianqing said that the South African bank with its leading position in the country represented the best organisation with which ICBC could partner.

ICBC views South Africa as an attractive market for investment with its prospects, its sophisticated economic and well regulated financial services infrastructure and the rapid growth in banking customer base.

The partnership is expected to cover broad areas of cooperation in China, Africa and other international locations.

Standard Bank operates in Zambia, Botswana, Kenya, Uganda, Democratic Republic of Congo, and Zimbabwe with minority holding in Ghana and Nigeria.

Trade and investment flows have developed between China, South Africa and other areas of Africa over the past few decades.

Recently, both the relative size, area of focus and bilateral nature of such trade have increased dramatically




Source: © 2005 Zambia Daily Mail.