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Zambian, Botswanan banks to change hands in ownership reshuffle

The direct owner of Namibia's Bank Windhoek Ltd. will take control of banks based in Zambia and Botswana from the companies' ultimate parent in a move aimed at enabling expansion beyond Namibia, according to a Dec. 8 release.

Capricorn Investment Group Ltd., formerly Bank Windhoek Holdings Ltd., will acquire 65% of Capricorn Investment Holdings (Botswana) (Pty.) Ltd., sole owner of Bank Gaborone Ltd., and 73% of Cavmont Capital Holdings Zambia Plc, sole owner of Cavmont Bank Ltd., from ultimate parent Capricorn Investment Holdings Ltd.

Capricorn Investment Group will also acquire a further 24.9% in Cavmont Capital Holdings Zambia from other minority shareholders.

Capricorn Investment Holdings will retain a 15.6% stake in Capricorn Investment Holdings (Botswana) to satisfy a commitment to a local Botswana investor.

Capricorn Investment Group will pay a total of 240.9 million Botswanan pula (US$22.9 million) for the stake in Capricorn Investment Holdings (Botswana) and 81.0 million Zambian kwacha (US$8.2 million) for the stake in Cavmont Capital Holdings. The total purchase consideration amounts to 428.8 million Namibian dollars (US$31.5 million), and the transaction will be settled in a 50/50 mix of debt and equity within 60 days of the fulfillment of conditions for the deal, which include the conclusion of sale-and-purchase agreements and required regulatory approvals.

The acquisitions will be effective as of Jan. 1, 2017.

Capricorn Investment Group said the transaction is part of its ambition to diversify its business interests and expand outside of Namibia. It added that the brands of Bank Gaborone and Cavmont Bank are closely aligned to that of Bank Windhoek and will be further aligned after the group rolls out a new brand architecture.