SA Reserve Bank ready to dispose of its 50% stake in African Bank

AFRICAN Bank’s performance has improved over the past three years. It reported a third successive year of growth when it released its results for the year to the end of September 2019. Simphiwe Mbokazi African News Agency (ANA)
DURBAN – The South African Reserve Bank (SARB) has informed African Bank Holdings Limited (ABHL) about its intention to dispose of its 50percent stake in the bank and open a way for a long-term sustainable shareholder that is better aligned to the bank’s growth aspirations.

SARB acquired its 50percent shareholding in ABHL in 2016 as part of the restructuring of African Bank after the bank was placed under curatorship in 2014, with SARB providing a capital injection of R5billion to assist in financing the group’s operations.

SARB said on Friday that it had published a request for a proposal to appoint a transaction adviser relating to the future sale of its shareholding in ABHL.

SARB said it had publicly stated that it was never its intention to hold this equity stake indefinitely, particularly as its shareholding created a potential conflict of interest between its role as the regulator of African Bank, and as a major shareholder of the group.

It said since April 2016, African Bank had made good progress towards achieving its strategic objectives, while increasing profits and building a stronger balance sheet.