Maravi

BEB purchases Nedfin for $9m

BEB purchases Nedfin for $9m
By Fridah Zinyama
Monday May 26, 2008 [04:00]

BLUE Employee Benefits (BEB), based in Botswana has purchased Nedfin Limited for US$ 9 million as part of its growth strategy to become Africa’s largest microfinance institution. The acquisition was effective April 1, 2008 and the transaction agreement contains warranties and indemnities normal to a transaction of this nature and incorporates restraints of trade with regard to certain outgoing shareholders. BEB is a subsidiary of Blue Financial Services.

According to Blue Financial Services chief executive officer Dave van Niekerk, BEB is to purchase the entire share capital and shareholder loan accounts of Nedfin, which holds a Non-Banking Financial Institution Licence granted to it by the Bank of Zambia in September 2005.

“Nedfin has been focusing on the business of short-term lending through its eight Zambian branches,” he said.
Niekierk said that acquisition would result in Blue, which already has a presence in Zambia, having a combined branch network of 20 and would effectively make Blue the single biggest micro financier in Zambia.

“Nedfin, who has always been a competitor in Zambia, is focussed on shorter term loan products and is a cash generative business that has seen consistent growth in volumes and profitability in the last year,” he said. “This acquisition is part of Blue’s longer term strategy to become the largest micro financier in Africa.”

As part of its strategy to expand throughout Africa, the AltX-listed Blue will be listing on the Botswana Stock Exchange on May 15. This will be a dual-listing of existing shares and no new shares would be issued and no new capital is to be raised.

Labels: BEB, MICROFINANCE

posted by MrK @ 3:45 AM