Johanneburg - For the second time this year, banking giant Absa has been accused of promising to sell its 74% Meeg Bank stake to black investors and then going back on its word.
On Friday, the Black Management Forum (BMF) and the National African Federated Chamber of Commerce and Industry (Nafcoc) attacked Absa for reneging on an agreement it struck last month with the two black business bodies.
The BMF and Nafcoc claim that at a meeting they held with Absa on September 18, the banking group agreed to abandon its planned buyout of minorities in Meeg Bank in exchange for the black organisations dropping their support of a legal challenge to the buyout offer by Meeg shareholder Zinzile Nkonki.
"In essence, Absa made it clear to the BMF and Nafcoc that they were now willing to sell their stake to any formidable company but the challenge would be for that company to get regulatory approval.
"In this meeting Absa also made an undertaking that it was also willing to give back office support to any company that buys Meeg for a period of 12 months," said Thando Mpulu, the chairperson of the BMF in the Eastern Cape.
Obstacle
Nkonki, who used to run the Eastern Cape-based Meeg, threw the R35.7m deal off the track after he successfully prevented it from being sanctioned by the Grahamstown High Court in August after it was overwhelmingly approved by Meeg minorities, which included the Eastern Cape government.
Nkonki's contestation is that the Eastern Cape government, which owns a portion of the 26% stake that Absa does not own, did not follow proper disposal processes when it sold its portion to Absa.
The meeting, which took place at the Absa headquarters in Johannesburg, was attended by Mpulu, BMF's managing director, Mncane Mthunzi, Nafcoc Eastern Cape president Justice Zotwa and Absa executives Happy Ntshingila, Louis von Zeuner and Makhosini Nkosi.
After the meeting, the BMF and Nafcoc immediately approached Teba Bank to inform it of Absa's willingness to sell Meeg Bank.
"Subsequent to our engagement with Absa, Teba organised a meeting to discuss the prospective sale of Meeg. We have been reliably informed that Absa denied any intention to sell Meeg and that their priority is to deal with the court case in front of them.
"They have told Teba that they will consider selling after they have resolved the court case. This has come as a shock to the BMF and Nafcoc because both parties have agreed that if Absa sells its Meeg stake to a black company, the legal matter can be settled outside court," said Mpulu.
Denial
Absa has denied it promised to sell the Eastern Cape bank and indicated that it was going ahead with its plans to acquire the rest of it.
"Absa confirms that its representatives had a meeting with representatives of the BMF and Nafcoc and another with a representative of Teba Bank.
"Absa indicated during both meetings that the current court process to sanction the scheme of arrangement between Meeg Bank and its shareholders other than Absa would continue.
"If the scheme is sanctioned, Absa will acquire all the shares in Meeg Bank that it does not already own," said Absa spokesperson Patrick Wadula.
He said the banking group was prepared to hold discussions on the future of Meeg Bank with any BEE entity after the transaction had received court approval.
It is believed that Nkonki's legal bid is being bankrolled by the BMF and Nafcoc, who want to ensure that Meeg does not fall into the hands of a white-led Absa.
Before Absa increased its ownership to 74% in March, Meeg was the only black-controlled bank in the country. Absa has indicated that it would integrate Meeg into its empire, raising fears that half of Meeg's 220 employees may be retrenched.
Nkonki has confirmed that he would continue with his court challenge of the Absa bid for Meeg.
"It is public knowledge that Absa is planning to retrench an additional 400 members of its staff.
"I really don't understand this excitement or the logic of acquiring Meeg Bank as they will be compelled to retrench at least half of Meeg bank employees as well," Nkonki said. Teba Bank chief executive Mark Williams said the lender was still interested in purchasing Meeg provided Absa was a willing seller."
He said reports that Teba had no cash when it tried to buy Meeg earlier this year were untrue.
- City Press