Johannesburg - The $285 million loan granted Ecobank Transnational Inc by Nedbank is set to be converted into shares by the Nedbank Group.
If the deal goes through, the Johannesburg-based lender could acquire up to a 20 percent stake in Ecobank, reports Bloomberg.
The deal is estimated at $500 million.
Mike Brown, CEO of Nedbank, said the company plans to exercise its right to convert the loan it granted Ecobank in 2011 into shares.
Nedbank formed an alliance in 2008 with the Pan-African bank in a pact that gives Ecobank reciprocal rights to buy into Nedbank.
Ecobank trades on three African exchanges and operates in 33 nations across the continent.
Read more at Bloomberg.