Barclays takes over Nile Bank
Dec 21, 2006
WHAT has been rumoured for months has finally been confirmed. The take-over of Nile Bank by Barclays is now an established fact and the sale is to be completed in early 2007.
By Sylvia Juuko
WHAT has been rumoured for months has finally been confirmed. The take-over of Nile Bank by Barclays is now an established fact and the sale is to be completed in early 2007.
“Barclays and the shareholders of Nile Bank are pleased to announce that they have reached agreement in principle for Barclays to acquire 100% of the share capital of Nile Bank,†a statement issued yesterday by both banks read.
“The acquisition will lead to Barclays and Nile Bank combining their distribution network, customer base and know-how to establish a leading position in the market. Barclays expects the transaction to be complete during the first quarter of 2007.â€
The sale price has not been revealed but banking experts estimate it to be 2.5 times the bank’s net asset value of sh11.7b.
With the take-over, Barclays will increase its current number of branches from seven to 25, and its number of employees to 400.
Earlier in the week, Nick Mbuvi, the managing director of Barclays Bank Uganda, had denied reports of the take-over, calling it “speculations and rumours.â€
Nile Bank is the seventh largest commercial bank in Uganda, with 18 branches and 228 employees. It was the first Ugandan bank to extend its branch network beyond Kampala and the first indigenous bank to install cash machines.
At the end of 2005, Nile Bank had assets worth sh134b and revenues of sh18b.
The acquisition of Nile bank is a departure of Barclays’ strategy. Until this month’s opening of the Mbale branch, the bank had opted to concentrate its business in the capital Kampala.
WHAT has been rumoured for months has finally been confirmed. The take-over of Nile Bank by Barclays is now an established fact and the sale is to be completed in early 2007.
“Barclays and the shareholders of Nile Bank are pleased to announce that they have reached agreement in principle for Barclays to acquire 100% of the share capital of Nile Bank,†a statement issued yesterday by both banks read.
“The acquisition will lead to Barclays and Nile Bank combining their distribution network, customer base and know-how to establish a leading position in the market. Barclays expects the transaction to be complete during the first quarter of 2007.â€
The sale price has not been revealed but banking experts estimate it to be 2.5 times the bank’s net asset value of sh11.7b.
With the take-over, Barclays will increase its current number of branches from seven to 25, and its number of employees to 400.
Earlier in the week, Nick Mbuvi, the managing director of Barclays Bank Uganda, had denied reports of the take-over, calling it “speculations and rumours.â€
Nile Bank is the seventh largest commercial bank in Uganda, with 18 branches and 228 employees. It was the first Ugandan bank to extend its branch network beyond Kampala and the first indigenous bank to install cash machines.
At the end of 2005, Nile Bank had assets worth sh134b and revenues of sh18b.
The acquisition of Nile bank is a departure of Barclays’ strategy. Until this month’s opening of the Mbale branch, the bank had opted to concentrate its business in the capital Kampala.