African Bank pays Sasfin R3.2 billion – with big plans for business banking
African Bank has paid Sasfin roughly R3.26 billion for its Capital Equipment Finance and Commercial Property Finance businesses.
African bank said that the deal will help it bolster its diversification into business banking as Sasfin looks at its core business.
R3.26bn deal sees African Bank bolster its diversification into business banking while Sasfin focuses on its core business.
“After months of engagement, we are pleased to have signed the deal, which enables us to further sustainably scale and diversify revenue and client base while de-risking our balance sheet,” said Kennedy Bungane, CEO of African Bank.
“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.”
“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.”
This is not the first significant transaction by African Bank ahead of its planned IPO in 2025 after it acquired Grindrod Bank in the last financial year in a move to re-enter the business banking market.
“Over the past year, Sasfin has undertaken a detailed strategic review of its business. Our strategy is to focus on our core businesses with strong capabilities and competitive advantages,” said Michael Sassoon, CEO of Sasfin Holdings Limited.
“This has resulted in us entering into this mutually beneficial transaction.”
“While it is difficult to part with the people and businesses that we have grown significantly over an extended period, we are confident that this deal will present new opportunities for our clients and teams.”
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