S.Africa's Nedbank to take 20 pct stake in Ecobank for $493 mln

Nedbank Group said on Thursday it will acquire a 20 percent stake in pan-African lender Ecobank for $493 million, ending months of speculation the South African bank would walk away from the deal over governance concerns.
Nedbank, South Africa's fourth-largest lender, had a right to acquire the stake under the terms of a 2011 loan to Ecobank. But a crisis over corporate governance and the departure of Ecobank's chief executive in March raised questions about whether Nedbank would go through with the deal.
Nedbank will pay $493.4 million in cash for new Ecobank shares, it said in a statement.
Nedbank Chief Executive Mike Brown told Reuters in August that Ecobank had made "enormous progress" on resolving its governance issues.
Togo-based Ecobank has a presence in over 30 sub-Saharan countries, meaning the deal would broaden Nedbank's reach well beyond its core South African market.