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Qatari bank acquires 12.5% stake in Ecobank

By Businessnews Staff on September 6, 2014

Qatar National Bank on Thursday said it had acquired acquired 1,767,612,630 ordinary shares and 732,277,056 preference shares in the capital of Ecobank Transnational Incorporated.

According to the bank, this amounts to 12.5 per cent stake in ETI.

“The stake of 12.5 per cent includes the current outstanding ordinary shares and the conversion of QNB’s convertible preference shares,” the bank said in a statement.

It added that the strategic partnership with Ecobank, a leading pan-African bank was a fundamental step towards QNB’s strategy of being a MEA Icon by 2017.

Ecobank Transnational Incorporated was established in 1985 in Lomé, Togo, and currently maintains a presence in 36 countries across the African continent and in four other countries across the globe.

According to the statement, Ecobank is one of the top three banks (by assets) in 14 of the countries in which it has a presence.

“As at June 2014, Ecobank had $23.4bn of assets and had generated $255m of profit before tax for the six months to June 30, 2014,” the statement said, adding that Ecobank operates across its network of 1,241 branches, 2,500 ATMs and 16,245 POS terminals servicing over 10.8 million customers. With 20,114 employees, Ecobank is the largest employer in the financial sector industry in Middle Africa.

The QNB Group said its ambition of being a MEA icon by 2017 had been boosted with the deal as it offered potential opportunities and commercial benefits resulting.

“This move further consolidates the growth strategy pursued by The QNB Group over recent years,” the statement said.

QNB operates in 26 countries and three continents around the world and already has a significant trading presence in Africa with branches, subsidiaries and associates operating in Algeria, Egypt, Libya, Mauritania, South Sudan, Sudan and Tunisia.

It was recently named “The Best Bank in The Middle East” by Euromoney Magazine and was voted “One of the Top 50 Safest Banks in the World” by Global Finance Magazine in 2013.

The Chief Executive Officer, Lambert Trust and Investment Limited, Mr. David Adonri, said the deal represented a very positive development for ETI and by extension the stock market.

He said, “It is a very positive development for ETI given the fact that the foreign investor is a well-established institution in the Middle East.

“So, being an investor and one of the owners of ETI, it means a lot for the success of ETI, especially financially. It should impact positively on the shares of ETI and by extension the stock market.”

[Punch]

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