Capricorn enhances foreign shareholding

Capricorn enhances foreign shareholding Investment group acquires Zambian, Botswana banks Capricorn has increased its shareholding in its Zambian and Botswana based banks. Bank Windhoek''s parent Capricorn Investment Group this week announced that it has acquired Zambia''s Cavmont and Botswana based Bank Gaborone.

“In terms of the agreement, Capricorn will acquire 65% of the issued share capital of Capricorn Investment Holdings, which owns 100% of the share capital of Bank Gaborone, and 97.9% of Cavmont Capital Holdings Zambia Plc, which owns 100% of the share capital of Cavmont Bank,” the statement said.

“The transaction is seen as a key enabler towards achieving Capricorn Group''s aim to diversify the business interests of the group and expand its footprint outside Namibia. This transaction will also strengthen the already close collaboration and alignment between the entities in the three countries through the shared interest held by Capricorn Investment Holdings,” the statement said.

The Namibian Sun has in the last two weeks asked Capricorn about the performance of its businesses outside Namibia. Capricorn''s spokesperson Marilize Horn said at the time: “Based on the attached Cautionary Announcement, we will not be responding to the questions. A full announcement will be made once we are in a position to do so.

Following the announcement of the acquisition, Horn responded to the query saying, “All the information that we can share at this point in time is included in the Stock Exchange Announcement (NENS). You will note that the acquisition is attached to a number of conditions set out in the announcement. We will send out a follow up announcement once more detail is available.”

Meanwhile, Global Credit Ratings (CGR) this week affirmed Capricorn Investment Holdings an AA and A1 in the long run and short run respectively, while Capricorn''s outlook was accorded as stable. The rating''s agency also affirmed Bank Windhoek Limited similar ratings to that of its parent, Capricorn while according it a stable outlook.

Said GCR: “The ratings of Capricorn Group reflect its strong market position in the Namibian banking industry and significant presence in the insurance and asset management markets, as well as its stable capitalisation and earnings generation, adequate risk management framework and conservative risk appetite.

“Capricorn''s leading operating subsidiary, Bank Windhoek, is the largest locally owned bank and second largest commercial bank in Namibia. Bank Windhoek contributed 98.2% (Financial Year End 2015: 98.1%) of the Capricorn consolidated assets at Financial Year End 2016 and 86.6% (Financial Year End 2015: 88.9%) of pre-tax profits. Other non-banking subsidiaries contributed the balance. As such, the Group''s ratings largely replicate the banking subsidiary''s ratings.

“The ratings also reflect the high probability of support from the Namibian authorities, if required, based on Bank Windhoek''s high systemic importance, stemming from its substantial market shares.”





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