Gupta associate can acquire bank assets

A BID by Gupta family business associate Salim Aziz Essa and businessman Hamza Farooqui to acquire the South African assets of Habib Overseas Bank (HOBL) has been given the green light by the Competition Commission.

The anti-trust body on Sunday said it had approved without conditions the merger whereby the newly-formed Vardospan intends to buy the bank.

Vardospan is a joint venture between two entities established by Essa and Farooqui in 2016 called Cinq Holdings and Pearl Capital Group Holdings Limited, respectively.

“Cinq Holdings and Pearl Capital are also recently established entities which are separately controlled by two individuals,” the commission said.

It also confirmed that Vardospan was established for the purpose of the acquisition of the bank.

HOBL is controlled by Pitcairns Finance SA (Pitcairns), a company that registered in Luxembourg.

The commission said it found no overlap in the activities of the merging parties.

“HOBL is involved in banking services and Vardospan is newly created for the purposes of the proposed transaction. The individual that controls Cinq Holdings is involved in property, business and management consulting, metal processing, coal prospecting and mining. The individual that controls Pearl Capital is involved in hotel and tourism, property and venture capital,” it said.

“The proposed transaction is unlikely to substantially prevent or lessen competition in any market.

“Further, there are no public interest concerns arising as a result of the proposed transaction.”

Essa owns a number of companies linked to the influential wealthy Gupta family. His business ties with them include his directorship of VR Laser Services, the Oakbay-owned company whose partnership with Denel fell foul of the National Treasury. is