Nedbank Group, a prominent financial institution based in South Africa, has finalized an agreement to divest its substantial 21.2% ownership stake in Ecobank Transnational Incorporated (ETI). The sale is being made to Bosquet Investments Limited, with a purchase consideration set at US$100 million, which equates to approximately ZAR1.8 billion.

This strategic decision by Nedbank follows a comprehensive review of its financial investment in ETI. As of June 30, the investment had been reclassified as a non-current asset held for sale, in accordance with International Financial Reporting Standard 5 (IFRS 5). Jason Quinn, Nedbank Group Chief Executive, expressed satisfaction at reaching this stage, noting that the board had approved the disposal of the asset.

Quinn further elaborated on the rationale behind Nedbank's decision, stating that it stemmed from a detailed evaluation encompassing the strategic alignment, financial performance, and long-term value proposition of the ETI investment. This move aligns with Nedbank’s broader strategy to optimize its capital allocation and sharpen its focus on core growth areas within its operations. The divestment marks the culmination of a significant and long-standing chapter in Nedbank’s relationship with ETI.

In his statement, Quinn also conveyed appreciation for the professionalism and integrity consistently demonstrated by ETI's board of directors, as well as for the constructive engagement that has characterized their partnership over the years. He highlighted the pivotal role played by the ETI board's stewardship in successfully navigating the institution through complex operating environments and advancing its pan-African mandate.

Bosquet Investments Limited, the acquiring entity, is identified as the private investment vehicle of Alain Nkontchou, who is also the Managing Partner and co-founder of Enko Capital Management. Bosquet Investments has provided the necessary security to demonstrate the funding capacity for the agreed purchase consideration. The transaction is currently projected to be finalized during the fourth quarter of 2025.