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FirstRand makes Nigerian move

Jan 14 2010 07:41 Maarten Mittner

Company Data

Firstrand [JSE : FSR]

Last traded R22.82
Change R-0.03
% Change -0.13%
Cumulative volume 5.47m
Market cap R128.66bn

Last Updated: 13/02/2012 at 15:48. Prices are delayed by 15 minutes. Source: McGregor BFA

 

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Johannesburg - FirstRand [JSE:FSR] has officially registered with the Central Bank of Nigeria for the acquisition of one of that country's banks.

This forms part of the South African bank's ambitious plans to expand into Africa. These plans were outlined by Sizwe Nxasana shortly after his appointment as chief executive.

FirstRand spokesperson Sam Moss says the formal process of acquiring a Nigerian bank has been initiated. She declined to say which bank it would be.

The process could be protracted; a due diligence still needs to be done. FirstRand expects greater clarity by mid-year.

Moss says that the FirstRand application is in the hands of the Nigerian central bank, which manages the process.

The extent of FirstRand's envisaged investment will not be announced at this stage. A significant stake in a large bank would cost at least $500m (about R3.5bn).

The Nigerian central bank had to give financial support to various banks in trouble because of the global financial crisis.

About 600bn naira (R29bn) was injected to save various large institutions, including the Oceanic and Union banks, from collapse.

- Sake24.com

- For more business news in Afrikaans, go to Sake24.com.

 
 
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