The sale of Eskom’s staff home loan book and assets to African Bank has collapsed after conditions of the deal were not met. <\/p>\n\n\n\n
In December 2024, Eskom announced that it would sell its staff home loan book and assets in Eskom Finance Company SOC Limited (EFC), as well as its interest in Nqaba Finance 1 RF Limited. <\/p>\n\n\n\n
Eskom offered home loans to its employees, with instalments then deducted from their salaries. When the deal was announced, the home loan book was valued at R5.7 billion. <\/p>\n\n\n\n
The National Treasury required the sale of the home loan business as part of the R250 billion bailout delivered to Eskom in 2023.<\/p>\n\n\n\n
African Bank said that integrating the R5.7 billion home loan book would diversify its product offering and enhance its capabilities and presence in the secured home loan market. <\/p>\n\n\n\n
African Bank was selected as the preferred bidder, and the sale of the loan book agreement regulating the proposed transaction was concluded in April 2025, subject to certain conditions.
The parties later agreed to extend the date for fulfilment of the conditions precedent, which was extended from 30 September 2025 to 31 March 2026. <\/p>\n\n\n\n
Despite the extension, Eskom said that certain conditions precedent were not fulfilled by 31 March 2026. The agreements thus lapsed, and the deal is no longer on. <\/p>\n\n\n\n
“Eskom will assess the most suitable way forward in relation to EFC, having regard to its strategic objectives and stakeholder considerations,” it said. <\/p>\n\n\n\n
“We will make further announcements, as and when required, in accordance with applicable regulatory and disclosure obligations.” <\/p>\n\n\n\n
The deal collapse is another blow for African Bank, in what has proved to be a very turbulent year for the bank. <\/p>\n\n\n\n