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FirstRand's Zambian deal terminated

Oct 07 2011 16:18 Reuters

Company Data

Firstrand Ltd [JSE : FSR]

Last traded R25.00
Change R-0.06
% Change -0.24%
Cumulative volume 12.14m
Market cap R140.95bn

Last Updated: 25/05/2012 at 19:32. Prices are delayed by 15 minutes. Source: McGregor BFA

 

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Johannesburg - FirstRand [JSE: FSR] said on Friday it had received formal notification from Zambia's central bank over the termination of a $5.4m deal to acquire Finance Bank and would comply with the directive.

"FNB has agreed to this request, and provided the process is within Zambian law, we will continue to engage with BOZ (Bank of Zambia)," it said.

The central bank seized Finance Bank from its shareholders in 2010 for legal violations, including questionable loans. Finance Bank's chairperson has said the seizure was politically motivated.

The Bank of Zambia said in a statement that Finance Bank had been handed back to previous shareholders as of Friday, and would continue normal operations.

Since his upset September 20 election victory, former opposition head Sata has fired the central bank governor and a host of other bureaucrats, reversed another foreign takeover and temporarily suspended mineral exports.

Some of the moves have caused jitters among investors in Africa’s biggest copper producer, including mining companies his Patriotic Front party accuses of dodging taxes by under-declaring the amount of ore they are shipping out of Zambia.


 
 
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