Monday, December 22, 2008

Blue acquires its S.A rival firm

nationmedia.com by Mwaniki Wahome

Blue Financial Services, Africa’s largest micro financier that started operations in Kenya last year has acquired its rival in South Africa.
The firm bought Credit U at a cost of 280 million Rand (Sh2 billion) in a move that will further solidify its market presence in that country.
Trade in Credit U shares was consequently suspended on December 8th and the company’s listing was terminated on Wednesday.
This deal to acquire listed entity Credit U (previously Kagisano Group) was announced in August and concluded this week.
Paved way
Group Chief Executive Officer Dave Van Niekerk said the conclusion of the deal has paved way for the cross listing of the firm in Namibia and Zambia.
“With the conclusion of this deal we can now focus on our dual listing plans in Namibia in the first quarter of 2009) and Zambia in the second quarter ” he said.
Blue Financial Services has set up operations in 12 countries in the continent and its acquisition of Credit U has increased its branches to 300 with over 3000 staff members across the continent.
The company recently announced a $70 million ( Sh19 billion ) loan facility from the Overseas Private Investment Corporation (“OPIC”).
The CEO welcomed the new shareholders who held shares in Credit U during the acquisition who will now be Blue shareholders.

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