Nedbank agrees to sell stake in Mauritius bank

JOHANNESBURG – South African banking group Nedbank has agreed to sell its 20,1 per cent stake in the State Bank of Mauritius for around US$50 million, the company said yesterday.

Nedbank, South Africa’s fourth-biggest bank by assets, said the disposal formed part of its strategy to focus on its core banking operations, a programme started in early 2004 that is now largely completed. It said this programme brought in proceeds of over four billion rand with profit in excess of one billion rand.The proceeds from the sale of the State Bank of Mauritius stake will not have a material effect on the group’s earnings, it said in a statement.Nedbank, majority-owned by insurer Old Mutual, acquired the stake in November 1997.The banking group launched a three-year recovery programme in 2004 to turn its business around after a host of problems, including wrong interest-rate calls, slashed profits and triggered a multi-billion-rand cash call.- Nampa-ReutersIt said this programme brought in proceeds of over four billion rand with profit in excess of one billion rand.The proceeds from the sale of the State Bank of Mauritius stake will not have a material effect on the group’s earnings, it said in a statement.Nedbank, majority-owned by insurer Old Mutual, acquired the stake in November 1997.The banking group launched a three-year recovery programme in 2004 to turn its business around after a host of problems, including wrong interest-rate calls, slashed profits and triggered a multi-billion-rand cash call.- Nampa-Reuters