By Lehlohonolo Lehana.
Nedbank group announced in a voluntary trading statement on Thursday that it has successfully concluded the sale of its 21.2% shareholding in Ecobank Transnational Incorporated (ETI) for $100 million (about R1.7 billion).
The transaction was first announced on 15 August 2025, when Nedbank said it had entered into a sale and purchase agreement with Bosquet Investments Limited to exit the investment.
Nedbank said the disposal was concluded on 17 December 2025 and “represents a reset of Nedbank’s strategy on the broader African continent, with a clear focus on the Southern African Development Community (Sadc) and East Africa regions in businesses Nedbank Group owns and controls”.
As a result of the disposal’s completion, the group said that, in terms of International Financial Reporting Standards (IFRS), cumulative foreign exchange losses and fair value adjustments of approximately a net R7 billion, related to the equity accounting treatment of its interest in ETI over time and previously recognised via other comprehensive income, are required to be recycled to profit or loss in the current reporting period.
Consequently, Nedbank said a reasonable degree of certainty exists that EPS for the 12 months ending 31 December 2025 will decrease by at least 20% to at least 2 888 cents, compared with 3 610 cents reported for the previous financial year.
It explained that the disposal will result in the cumulative foreign exchange losses and fair value adjustments, which amount to a R7 billion loss. This will impact the company’s bottom line.
The sale marks the end of an era of pain for Nedbank, which initially pumped R6.3 billion into Ecobank and has not seen much in the way of rewards.
In the bank’s most recent interim results presentation, CEO Jason Quinn admitted that the bank’s investment case did not materialise as expected.
In particular, Quinn said that the performance of the Nigerian economy did not prove to be as strong as originally expected.
Operating in Nigeria also proved to be more difficult than initially anticipated, with Nedbank facing elevated regulatory uncertainty.
Quinn bemoaned ongoing regulatory recapitalisation requirements at the bank’s interim results in early August, which created a scenario where Nedbank would have to inject capital to prevent its shareholding being diluted.
“We wish to express our gratitude for the professionalism and integrity with which the board of directors of ETI have consistently conducted its affairs, and for the constructive engagement that has underpinned our relationship,” Quinn said.
“The ETI board’s stewardship has played a pivotal role in navigating ETI through complex environments and in advancing its pan-African mandate.”
“The sale represents a reset of Nedbank’s strategy on the rest of the African continent with a clear focus on the SADC and East Africa regions in businesses Nedbank owns and controls, and areas where we can play to our strengths.”
Nedbank announced on 18 December that it has agreed to pay Transnet R600 million in a confidential commercial settlement, ending a year-long legal dispute over interest-rate swaps.
The settlement, made without any admission of liability, follows efforts by both parties to avoid prolonged litigation and preserve their business relationship, the companies said.