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Capricorn pockets Zambia’s Cavmont, Bank Gaborone – Capricorn Group Holdings, owners of Bank Windhoek, last week announced the conclusion for the purchase of Zambian bank Cavmont Bank.

This follows a cautionary issued on the Namibia Stock Exchange platform recently. Commenting on the transaction, Capricorn said in a statement: “The board of directors of Capricorn Group is pleased to announce that all conditions precedent has been fulfilled and that the transactions have become effective.”

Capricorn will now take full control of Bank Gaborone and Zambian-based Cavmont Bank.

“With effect of 1 January 2017, Capricorn Group holds 65% shareholding in Capricorn Investment Holdings Botswana, which in turn holds 100% of the share capital in Bank Gaborone, and with effect of 1 January 2017, Capricorn Group holds 97.9% effective shareholding in Cavmont Capital Holdings Zambia, which owns 100% of the share capital of Cavmont Bank,” Capricorn said.

“The transaction is seen as a key enabler towards achieving Capricorn Group’s aim to diversify the business interests of the group and expand its footprint outside Namibia. This transaction will also strengthen the already close collaboration and alignment between the entities in the three countries through the shared interest held by Capricorn Investment Holdings,” a recent statement by the group said.

Capricorn was also recently commended for its good financial run of late by ratings agency, GCR which affirmed AA status.

“Capricorn’s leading operating subsidiary, Bank Windhoek, is the largest locally owned bank and second largest commercial bank in Namibia. Bank Windhoek contributed 98.2% (Financial Year End 2015: 98.1%) of the Capricorn consolidated assets at Financial Year End 2016 and 86.6% (Financial Year End 2015: 88.9%) of pre-tax profits. Other non-banking subsidiaries contributed the balance. As such, the Group’s ratings largely replicate the banking subsidiary’s ratings.

“The ratings also reflect the high probability of support from the Namibian authorities, if required, based on Bank Windhoek’s high systemic importance, stemming from its substantial market shares,” they added.

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