Investec to sell Israeli stake

Johannesburg - Specialist banking group Investec plc disclosed Thursday it is to sell its majority stake in Investec Bank (Israel) to First International Bank of Israel.

Investec, which is listed in London and Johannesburg, said it had reached an agreement on Wednesday to sell its 80.28% stake in the Israeli bank.

The purchase price will be based on the net asset value of the bank subject to adjustments, it said. It is the intention of the parties to sign an agreement within 14 days of Thursday.

Investec said the transaction amounts to less than 5% of the group's combined market capitalisation.

As at March 31 2004, as reflected in the consolidated accounts of the combined Investec group (comprising Investec plc and Investec Ltd), the bank reported an operating profit after taxation but before exceptional items and amortisation of goodwill of £1.9m and its shareholders' funds were approximately £48m.

The sale of the shares is dependent on the approval of the relevant regulatory authorities in Israel, South Africa and the United Kingdom, including the Bank of Israel and the Israeli Antitrust authorities. The agreement also requires the approval of the board of directors of both parties.

We live in a world where facts and fiction get blurred
In times of uncertainty you need journalism you can trust. For only R75 per month, you have access to a world of in-depth analyses, investigative journalism, top opinions and a range of features. Journalism strengthens democracy. Invest in the future today.
Subscribe to News24
Rand - Dollar
15.88
+0.3%
Rand - Pound
21.03
+0.4%
Rand - Euro
17.87
+0.6%
Rand - Aus dollar
11.30
-0.7%
Rand - Yen
0.14
+0.4%
Gold
1,781.79
+0.2%
Silver
22.40
+0.1%
Palladium
1,850.61
-0.2%
Platinum
956.50
+1.5%
Brent Crude
73.08
+4.6%
Top 40
66,514
+3.0%
All Share
72,939
+2.7%
Resource 10
70,120
+4.0%
Industrial 25
96,001
+2.8%
Financial 15
14,195
+0.7%
All JSE data delayed by at least 15 minutes Iress logo
Company Snapshot