Nedbank Group Ltd. has reached an agreement to sell its 21.2% stake in Ecobank Transnational Inc. for $100 million to Bosquet Investments, a company controlled by Alain Nkontchou, former chairman of Ecobank.
The sale marks the end of a 17-year strategic partnership that allowed Nedbank to expand its presence beyond South Africa. Ecobank, based in Togo, has seen its stock fall 75% over the past decade.
Nedbank initially became Ecobank’s largest shareholder in 2008 through a $500 million investment, formalizing the partnership in 2014. The investment provided Nedbank with access to Ecobank’s operations in 33 countries, including much of sub-Saharan Africa and France.
Nedbank cited the challenging economic conditions in Nigeria, where Ecobank has a significant operation, and the exit of several South African clients from the region as factors that hindered synergies and limited cross-selling opportunities.