Ecobank making progress in resolving governance problems, Mike Brown says

Pan African lender Ecobank Transnational has made progress in resolving governance problems, Mike Brown, the chief executive of its alliance partner Nedbank Group, said on Tuesday.

“ETI went through some governance challenges, but in the last few months we think they’ve made enormous progress in resolving those issues,” Brown said in a Reuters interview.

Nedbank, South Africa’s fourth-largest lender by assets, has a strategic alliance with Ecobank and under a deal with the Togo-based lender has until November 25 to decide if it will take a 20 percent stake in the bank.

It will also contractually increase its stake in Banco Unico in Mozambique to as much as 70 percent within three years, up from 36.4 percent now.

“We remain focused on our vision to be Africa’s most admired bank through acquiring an initial 36.4 per cent stake (with a pathway to control) of Banco Unico in Mozambique, and we have until 25 November to make a decision on our rights to acquire up to 20 per cent in Ecobank Transnational Incorporated (ETI),” said the company in a statement.

Nedbank rose 0.6 percent to 239.33 rand as of 11:55 a.m. in Johannesburg trading.