19 October 2016

FNB acquires Pointbreak and EBank Namibia

FNB Namibia says it has successfully concluded negotiations to acquire 100% of Pointbreak and EBank, subject to all necessary regulatory approvals.

First Lady Monica Geingos has direct and indirect interests in both Pointbreak and Ebank.

Pointbreak, a Namibian financial services group, provides investment management and wealth management services to the private, corporate and institutional markets, managing in excess of N$8 billion of third party capital.

The value of the transaction could not be disclosed, as the interested parties said the deal was still subject to regulatory approval, Pointbreak CEO Josephat Mwatotele told The Namibian yesterday.

Pointbreak owns 49% of Stimulus, and also about 58,9% of Ebank.

This means that FNB will now proportionally own Pointbreak’s shares in all the companies owned by Stimulus.

The current Stimulus investment portfolio includes 44,58% in Plastic Packaging; 12,5% in Polyoak Namibia; and 44,58% in Plaspack Investments. It also holds 26% shareholding in Nashua Namibia; 88,3% shareholding in Joe’s Beerhouse Properties; 25% in the Cymot Group; 45% in Walvis Bay Stevedoring; and 50% in NEO Paints Holdings.

In the media sector, Stimulus has 100% shareholding of Namibia Media Holdings, the publishers of Republikein, Namibian Sun and Allgemeine Zeitung.

FNB said the acquisition of Pointbreak will enhance the investment know-how and local wealth management capability of FNB, while Pointbreak’s longstanding client-focused approach aligns well to FNB’s vision of playing a leading role in the premium banking space in Namibia. The transaction will further complement the intended launch of Ashburton Investments in Namibia, the asset management business within the FirstRand group, FNB Namibia’s controlling shareholder.

Clients of Pointbreak will therefore receive access to the wider range of investment products and financial services offered by FirstRand, FNB said.

“We are excited about the enhanced customer proposition this transaction will bring to the Namibian market. Innovation in the way we do business is core to our long-term strategy, and will enable us to continue delivering sustainable benefits to our staff, customers and shareholders,” said Sarel van Zyl, CEO of FNB Namibia.

According to Mwatotele, there are many synergies between Pointbreak, FNB and Ashburton.

“We are confident that the transaction will allow us to broaden our wealth and investment management offering even further, in the pursuit of providing a one-stop financial home for our clients,” he stated.

EBank CEO Mike Mukete said the transaction was a major step towards EBank’s vision for accessible banking and economic inclusion.

He said the transaction is still subject to various regulatory approvals, including those from the Bank of Namibia, Namfisa, the Namibian Competition Commission and the South African Reserve Bank, and can only be implemented after approvals have been received from these regulators.

Ebank brand and marketing manager Jerry Elago told The Namibian yesterday that the deal was a ‘marriage of like-minded entities.’ He said Ebank and FNB shared a similar vision, and the deal will help Ebank to extend its footprint.

“I believe that Pointbreak will provide the FNB Namibia Group with immediate access into the private wealth management space under the Asburton banner. This will in turn increase Pointbreak’s access to wider product offerings and a client critical mass,” said Windhoek-based analyst, Ngoni Bopoto.

“This acquisition makes a lot of sense for the future growth prospects of FNB Namibia. It is in line with the larger FirstRand strategy, where they are moving strongly to invest/insure. It creates even further scope in the unit trust, insurance and trust services businesses,” said Eloise du Plessis, an equity analyst and strategist at PSG Namibia. Source: The Namibian