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Further to the cautionary announcement of 4 April 2005 Nedcor
is pleased to announce that, as part of its ongoing programme of
transformation, and subject to the fulfilment of the conditions
precedent set out in Conditions
precedent to the Nedcor Transaction,
Nedcor is proposing the
introduction of direct, broad-based black ownership into the Nedcor
Group by way of the issue of new ordinary shares in the share capital
of Nedcor ranking pari passu in all respects with the existing
issued
ordinary shares of Nedcor. Accordingly a diverse group of black
stakeholders consisting of employees, clients, community interest
groups, non-executive directors and strategic Black Business Partners,
have been selected to participate as shareholders.
The proposed transaction achieves strong
alignment with the overall strategic objectives of Nedcor in
a number of key respects. These include:
- positioning of Nedbank as a “bank for
all”;
- repositioning of the Nedbank brand
in the retail segment with a potential increase in retail clients;
- assisting in the attainment of employment
equity targets, particularly at senior employee levels;
- repositioning the bank internally and
culturally to better serve the requirements of a changing external
market;
- improving market share in the public sector;
- assisting with targeted expansion and growth into Africa and
specifically sub-Saharan Africa;
- protecting existing business and market share by meeting and
exceeding the ownership and control requirements of the FSC;
- participating in a meaningful way in the development of emerging
BEE corporates and securing future growth together with these
corporates;
- building on a leading position in the BEE financing market;
- rewarding employee and client loyalty; and
- aligning with Nedcor’s overall programme of promotion of women’s
interests.
The table below sets out the total deal size at Nedcor as well as
the black ownership at Nedcor using the enlarged issued share capital
of Nedcor to facilitate the Nedcor Transaction.
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Total deal |
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Black ownership |
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|
As a % of |
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|
|
Share-
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|
Share-
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|
Nedcor's |
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|
|
holding
|
|
holding
|
|
South |
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|
|
(post issue
|
|
(post issue
|
|
African |
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No of |
|
of new
|
|
of new
|
|
business |
| |
shares |
Deal value |
shares) |
|
shares) |
|
value |
| |
m |
Rm |
|
|
|
|
|
| Employee and Management Schemes |
9.7 |
725 |
2.23% |
|
2.09% |
|
2.57% |
| Eyethu Black Executive Trust |
2.1 |
156 |
0.48% |
|
0.48% |
|
0.59% |
| Eyethu Black Management Scheme |
5.3 |
393 |
1.21% |
|
1.21% |
|
1.49% |
| Eyethu Broad-based Scheme |
1.4 |
107 |
0.33% |
|
0.19% |
|
0.23% |
| Eyethu Evergreen Trust |
0.9 |
69 |
0.21% |
|
0.21% |
|
0.26% |
| |
|
|
|
|
|
|
|
| Client-orientated Schemes |
21.3 |
1 593 |
4.89% |
|
4.89% |
|
6.03% |
| Eyethu Retail Client Scheme |
9.5 |
708 |
2.17% |
|
2.17% |
|
2.68% |
| Eyethu Corporate Client Scheme |
11.8 |
885 |
2.72% |
|
2.72% |
|
3.35% |
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|
|
|
|
|
|
|
| Nedcor Non-executive directors |
0.8 |
59 |
0.18% |
|
0.18% |
|
0.22% |
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|
|
|
|
|
|
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| Black Business Partners |
7.9 |
590 |
1.81% |
|
1.81% |
|
2.23% |
| WIPHOLD Consortium* |
3.9 |
295 |
0.91% |
|
0.91% |
|
1.12% |
| BRIMSTONE Consortium* |
3.9 |
295 |
0.91% |
|
0.91% |
|
1.12% |
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|
|
|
|
|
|
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| Eyethu Community Trust |
1.6 |
118 |
0.36% |
|
0.36% |
|
0.45% |
| Total |
41.3 |
3 085 |
9.47% |
|
9.33% |
|
11.50% |
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| * Figures rounded up to 2 decimal places |
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