Johannesburg - Transaction Capital Ltd., the South African financial services company, agreed to sell its stake in Bayport Financial Services to Bayport Management Ltd. for 1.33 billion rand ($140 million).
Bayport Management’s acquisition of the 82.65 percent holding values the company at 1.6 billion rand, Transaction said today in a regulatory statement.
The deal also includes the sale of Transaction’s stake in Zenthyme Investments Proprietary Ltd.
Bayport Financial provides unsecured credit for mobile phones and subscriptions to low- and middle-income South Africans.
Bayport Management offers unsecured loans in six African countries and Colombia and has more than 270,000 clients.
Transaction Capital acquired the stake in Bayport Financial in 2010 and said it offered the potential to later buy Bayport Management.
The lender said it’s disposing of the holding amid “negative sentiment” in the unsecured lending industry. - Bloomberg News