Capitec, Nedbank vie to purchase Portugal’s Mercantile
THE Portuguese government has shortlisted Capitec, Nedbank, Public Investment Corporation (PIC) and a consortium of banks are in the shortlist to acquire Mercantile Bank Holdings Limited in South Africa.
The consortium comprises Arise B.V. and Grindrod Bank Limited. This approval allows the sale process of Mercantile by Caixa Geral de Depósitos (CGD), a Portuguese State-owned banking and financial services group, to progress to the next phase.
CGD has received 18 nonbinding offers for Mercantile, the bank controlling company and sole shareholder of Mercantile Bank, a niche business and commercial bank which specialises in serving entrepreneurs. CGD announced its intention to sell Mercantile last year as part of a strategic plan approved by the European Commission, requiring CGD to
reduce its foreign assets. Mercantile is 100-owned owned by CGD.
Pursuant to the recommendation of CGD, the Portuguese Government approved the shortlist of potential buyers after a thorough evaluation process by CGD and its advisors of the non-binding offers received.
Karl Kumbier, Chief Executive Officer of Mercantile, said the company was pleased by the quality of the potential buyers on the list.
“I believe interest in Mercantile from companies of this calibre is not only testament to the quality of our business, but also of our team,” Kumbier said.
“I am excited that each of these potential buyers could open up new opportunities for Mercantile and add great value to our business, just as we can add great value to theirs.”
Mercantile’s latest financial results for the year ending December 31, 2017 saw its net profit after tax climb by 20 percent to R213 million (US$15,8 million).
This follows growth in net profit after tax of 21 percent in 2016 and 15 percent in 2015.
Mercantile’s assets grew by 9 percent in 2017 to R13,4 billion. Deposits grew by 10 percent to R9, 3 billion.