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SARB issues an RFP to appoint a Transaction Advisor relating to the Future Disposal of its Shareholding in ABHL


                            

SARB issues an RFP to appoint a Transaction Advisor relating to the Future Disposal of its Shareholding in ABHL:
AFRICAN BANK LIMITED
(Incorporated in the Republic of South Africa)
(Registered Bank)
(Registration No. 2014/176899/06)
Company code: ABKI
(‘African Bank’ or ‘the Bank’)

SARB ISSUES AN RFP FOR THE APPOINTMENT OF A TRANSACTION ADVISOR RELATING TO
THE FUTURE DISPOSAL OF ITS SHAREHOLDING IN AFRICAN BANK HOLDINGS LIMITED
(‘ABHL’)

The South African Reserve Bank (‘SARB’) has published a request for proposal (‘RFP’) to
appoint a transaction advisor relating to the future sale of its shareholding in ABHL.

The SARB acquired its 50% shareholding in ABHL in 2016 as part of the restructuring of
African Bank Limited (renamed Residual Debt Services ‘RDS’) after the bank was placed
under curatorship. In its role as shareholder, the SARB provided a capital injection to assist
in financing ABHL’s operations. It was never the intention of the SARB 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 ABHL.

Since the new African Bank began operations in April 2016, the Bank has made good progress
towards achieving its strategic objectives, while increasing profits and building a stronger
balance sheet. The SARB believes that this is an opportune time for the Bank to obtain a
long-term sustainable shareholder who is better aligned to the Bank’s growth aspirations.

The SARB has therefore issued an RFP to appoint a transaction advisor to assist the SARB in
determining the scope and approach for the disposal. The SARB anticipates that the disposal
process will be completed within 18 – 24 months after the identification of a suitable buyer.

The management and Board of ABHL do not anticipate that this process will impact on the
operations of the Bank. The Bank will endeavour to work closely with the SARB to facilitate
an orderly process.

The SARB will continue to support the Bank as its major shareholder until the conclusion of
the disposal process.

14 February 2020

Debt Sponsor
RAND MERCHANT BANK
(A division of FirstRand Bank Limited)
Think Precinct, 1 Merchant Place
Cnr Fredman Drive & Rivonia Road
Sandton 2196, South Africa
P O Box 786273, Sandton, 2146, South Africa

Date: 14-02-2020 08:00:00
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