Registered users can save articles to their personal articles list. Login here or sign up here

Sarb moves to sell stake in African Bank

Sarb sees the disposal process being completed within 18–24 months after a suitable buyer is identified.

South Africa’s central bank has started the process to appoint an advisor to manage the sale of its 50% holding in small lender African Bank, the company said on Friday, around six years after injecting R5 billion to rescue it.

African Bank was hived off from its listed parent, African Bank Investments, and placed under South African Reserve Bank (Sarb) control in 2014 after nearly collapsing under the weight of bad loans. Sarb deputy governor Kuben Naidoo said in July it would look to sell its stake in the lender within a year or two.

African Bank said in a statement on Friday that the Sarb had now issued a request for proposal (RFP) regarding the sale of its stake, the first step in the process of appointing a transaction advisor.

“The Sarb anticipates that the disposal process will be completed within 18–24 months after the identification of a suitable buyer,” the statement said.

The move is a vote of confidence in the lender’s turnaround strategy, with the Sarb wanting to make African Bank viable before it exits. While the bank has grappled with a decline in customer numbers, it has also increased profits.

African Bank’s other shareholders include the country’s largest lenders – FirstRand, Standard Bank, Nedbank, Capitec and Investec – and a government employee pension fund. 

Get access to Moneyweb's financial intelligence and support quality journalism for only
R63/month or R630/year.
Sign up here, cancel at any time.

COMMENTS   4

You must be signed in to comment.

SIGN IN SIGN UP

So what happened to the bad loans? Where did they evaporate to?

Into my pension that Old Mutaul lost in their “Golden Horse” and some in Steinhoff’s race horses.

and all the taxpayers who contributed are going to get a R1 000 rebate. Yeah right.

They should just keep AFB as the new State bank then. Pay out the other banks and run it as a state bank
That way they can go bancrupt faster and your pensions can disapear again

Load All 4 Comments
End of comments.

LATEST CURRENCIES  

USD / ZAR
GBP / ZAR
EUR / ZAR

Podcasts

NEWSLETTERS WEB APP SHOP PORTFOLIO TOOL TRENDING CPD HUB

Follow us:

Search Articles:Advanced Search
Click a Company: