The South African Reserve Bank has given notice to African Bank that it intends to sell its 50% stake in the group, bringing to an end the ‘stabilising’ role it played in the bank after its 2016 restructure.<\/p>\n
The SARB acquired its 50% shareholding in African Bank in 2016 as part of the restructuring of African Bank Limited (renamed Residual Debt Services) after the bank was placed under curatorship in 2014.<\/p>\n
In its role as shareholder, the SARB provided a capital injection of R5 billion to assist in financing the group\u2019s operations.<\/p>\n
The SARB has publicly stated that it was never its intention to hold this equity stake indefinitely, particularly because its shareholding creates a potential conflict of interest between its role as a regulator of African Bank and as a major shareholder of the Group.<\/p>\n
Since the new African Bank began operations in April 2016, it has made good progress towards achieving its strategic objectives, while increasing profits and building a stronger balance sheet.<\/p>\n
“The SARB believes that this is an opportune time for African Bank to obtain a long-term sustainable shareholder who is better aligned to the bank\u2019s growth aspirations,” African Bank said.<\/p>\n
“The SARB has therefore issued a request for proposal to appoint a transaction advisor to assist the SARB in determining the scope and approach for the disposal.”<\/p>\n
The Reserve Bank said it anticipates that the disposal process will be completed within 18 to 24 months after the identification of a suitable buyer.<\/p>\n
African Bank\u2019s other shareholders are FirstRand, Standard Bank, ABSA, Nedbank, Capitec, Investec and the Government Employees Pension Fund. These shareholders support the SARB\u2019s decision to appoint a transaction advisor and to commence a process to exit its shareholding.<\/p>\n
The SARB will continue to support the Bank as its major shareholder until the conclusion of the disposal process, it said.<\/p>\n
CEO of African Bank, Basani Maluleke said: “Our customers can rest assured that this process will have no impact on our on-going efforts to advance their lives by providing relevant and affordable financial products together with great customer service.”<\/p>\n
“Our investors can also be assured that we remain committed to growing African Bank\u2019s image as a trusted bank and a significant player in the banking sector.”<\/p>\n