Absa ? one of South Africa's largest banking groups ? may buy a controlling interest in Namibia's Capricorn Investment Holdings (CIH).

In a statement on Friday, Absa said a non-binding agreement had been reached to allow it to pursue the acquisition of a controlling interest in CIH for an undisclosed amount.

"CIH is a financial services group whose businesses include, most notably, the flagship brand Bank Windhoek, which is a leading Namibian bank with over R13-billion in assets," Absa said.

The potential transaction would be subject to a due diligence investigation to Absa's satisfaction and confirmation of support from the majority of CIH shareholders.

It would also depend on final approval by all the required internal governance structures and all the necessary legal and regulatory approvals in South Africa and Namibia; and no material adverse change prior to completion.

"A further announcement will be made in due course," Absa said.