Investec to sell Israeli stake

Investec, which is listed in London and Johannesburg, said it had reached an agreement on Wednesday to sell its 80.28% stake in the Israeli bank.

The purchase price will be based on the net asset value of the bank subject to adjustments, it said. It is the intention of the parties to sign an agreement within 14 days of Thursday.

Investec said the transaction amounts to less than 5% of the group's combined market capitalisation.

As at March 31 2004, as reflected in the consolidated accounts of the combined Investec group (comprising Investec plc and Investec Ltd), the bank reported an operating profit after taxation but before exceptional items and amortisation of goodwill of £1.9m and its shareholders' funds were approximately £48m.

The sale of the shares is dependent on the approval of the relevant regulatory authorities in Israel, South Africa and the United Kingdom, including the Bank of Israel and the Israeli Antitrust authorities. The agreement also requires the approval of the board of directors of both parties.