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. <\/p>\n\n\n\n
Capitec is selling its rental finance business to Sasfin Holdings for R201 million, and will also provide a R1.6 billion credit facility.<\/p>\n\n\n\n
(CRF) is a rental finance business established in 2011, which provides asset financing services for businesses across various industries.<\/p>\n\n\n\n
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. <\/p>\n\n\n\n
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. <\/p>\n\n\n\n
Its board thus believes that CRF would benefit from integration with a specialist operator in Sasfin. <\/p>\n\n\n\n
Sasfin, via its interest in Sunlyn, is a rental finance operator with decades of sector-specific operating expertise and an existing rental finance business.<\/p>\n\n\n\n
CRF will be integrated with Sunlyn, which Capitec said will make CRF better positioned to
maximise value from the business.<\/p>\n\n\n\n
The disposal consideration is R201 million, subject to customary adjustments upon the closing of the transaction, payable in cash on the closing date. <\/p>\n\n\n\n
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.<\/p>\n\n\n\n
Sasfin used to be a banking rival to Capitec, but\u00a0exited its banking business\u00a0and focused on its asset management and rental finance operations.<\/p>\n\n\n\n
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. <\/p>\n\n\n\n
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. <\/p>\n\n\n\n
After exiting the banking business, Sasfin underwent a large strategic reset, which included the rebranding of Sasfin Wealth to Otto1890.<\/p>\n\n\n\n
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