R3.26bn deal sees African Bank bolster its diversification into business banking while Sasfin focuses on its core business.
African Bank has entered into binding heads of agreement, subject to relevant conditions including regulatory approvals, with Sasfin to acquire their Capital Equipment Finance and Commercial Property Finance loan books, for around R3,26 billion.
“After months of engagement, we are pleased to have signed the deal, which enables us to further sustainably scale, diversify revenue and client base while de-risking our balance sheet. This further delivers on our ‘Excelerate25’ strategy to expand our core and establish our footprint in the business banking market leveraging African Bank’s balance sheet and strong capital levels,” said Kennedy Bungane, CEO African Bank. “We are thrilled to welcome a core team of highly competent seasoned professionals to the African Bank family as we work together to enhance our client experience and take the offering to the next level,” Kennedy continues.
This deal comes on the back of the transaction concluded in November 2022 whereby African Bank acquired Grindrod Bank, in a move to re-enter the business banking market and deliver on the vision of the Bank’s pioneering founders and provide banking to entrepreneurs as part of their strategy.
“Over the past year Sasfin has undertaken a detailed strategic review of its business. Our strategy is to focus on our core businesses where we have strong capabilities and competitive advantages,” says Michael Sassoon, CEO of Sasfin Holdings Limited. “While it is difficult to part with the people and businesses that we have grown significantly over an extended period of time, we are confident that this deal will present new opportunities for our clients and teams.”
Sassoon continues, “This deal presents a significant milestone in the execution of our strategy to unlock shareholder value, by focusing on our capital-light growth businesses.”
The SENS announcement can be found here.