Capitec sells business for R210 million
Capitec Bank has entered into an agreement to sell 100% of Capitec Rental Finance (CRF) to Sasfin Holdings for R201 million, but will also provide a R1.6 billion credit facility.
Capitec is selling its rental finance business to Sasfin Holdings for R201 million, and will also provide a R1.6 billion credit facility.
(CRF) is a rental finance business established in 2011, which provides asset financing services for businesses across various industries.
Capitec, the largest bank in South Africa by customer numbers, acquired CRF in 2019 as part of its acquisition of Mercantile Bank, which has been rebranded to Capitec Business.
While CRF operates a rental finance book and has established a track record as a profitable business, Capitec said that it does not align with its core strategic focus.
Its board thus believes that CRF would benefit from integration with a specialist operator in Sasfin.
Sasfin, via its interest in Sunlyn, is a rental finance operator with decades of sector-specific operating expertise and an existing rental finance business.
CRF will be integrated with Sunlyn, which Capitec said will make CRF better positioned to
maximise value from the business.
The disposal consideration is R201 million, subject to customary adjustments upon the closing of the transaction, payable in cash on the closing date.
Along with the sale, Capitec Bank will also provide a secured credit facility of R1.6 billion to CRF to fund the ongoing rental receivables book.
Sasfin used to be a banking rival to Capitec, but exited its banking business and focused on its asset management and rental finance operations.
The group had previously sold its Capital Equipment Finance and Commercial Property Finance loan books to African Bank in a deal worth over R3 billion in 2023.
The Sasfin Group had faced allegations of money laundering and illicit financial flows in its banking division. It was fined R210 million by the Prudential Authority in 2024.
After exiting the banking business, Sasfin underwent a large strategic reset, which included the rebranding of Sasfin Wealth to Otto1890.
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