FNB to acquire Pointbreak and EBank

 

Windhoek

FNB Namibia says it has successfully concluded negotiations to acquire the entire shareholding of Pointbreak as well as EBank, for an undisclosed amount. The finalisation of the transaction is however subject to regulatory approvals by the Namibian Competition Commission, the Namibia Financial Institutions Supervisory Authority, the Bank of Namibia and the South African Reserve Bank.

According to FNB Namibia, the acquisition of Pointbreak is expected to complement the intended launch in Namibia of Ashburton Investments, the asset management business within the FirstRand group, which is FNB Namibia’s controlling shareholder.

“Pointbreak’s long-standing client-focused approach aligns well to FNB’s vision of leading the premium banking space in Namibia,” read the statement by FNB Namibia.

Founded in 1999, PointBreak is a private equity firm specialising in growth, start-up as well as wealth and investment management with presence in Namibia as well as South Africa. In Namibia, Pointbreak is the asset manager of the Stimulus investment fund portfolio, which is the country’s first locally based private equity investment portfolio.

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

The acquisition of Pointbreak, which is managing in excess of N$8 billion of third party capital, is expected to enhance the investment know-how and local wealth management capability of FNB, the statement said.

Pointbreak is also the majority institutional shareholder in EBank with over 77.5 percent shareholding. Individual shareholders comprising of Monica Geingos, Martin Shipanga, and the executive management of the bank own the rest of EBank shareholding.

“The partnership will enable the activation of FNB’s eWallet to EBank’s client base, with the ultimate goal of providing banking services to all Namibians, even in areas that cannot be serviced through a branch network,” read the statement issued by FNB Namibia yesterday.

Mike Mukete, EBank chief executive officer commented that the transaction was a major step towards EBank’s vision for accessible banking and economic inclusion. “The EBank team is most excited about the many opportunities presented by the large footprint and infrastructure provided by the FNB Namibia group,” said Mukete.

The statement further says EBank and FNB have a similar vision of achieving inclusive and broad-based banking in Namibia, primarily utilising technology and cellphone banking capabilities.

“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 to deliver sustainable benefits to our staff, customers and shareholders,” said Sarel van Zyl, the chief executive officer of FNB Namibia.

The Stimulus portfolio includes investments such as Cymot, Plastic Packaging, Namibia Media Holdings, Walvis Bay Stevedoring, Joe’s Beerhouse Properties, Nashua and Neo Paints. Assets under management amount to N$381 million and are currently valued at more than N$530 million as at February 2016, according to available information
“There are many synergies between Pointbreak, FNB and Ashburton and we look forward to unlocking these synergies for the benefit of our long-standing Namibian client base. 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,” said Pointbreak chief executive officer Josephat Mwatotele.

Read full story on New Era Newspaper Namibia