UBank receives support in bid to stave off takeover

Nazeem Howa

Nazeem Howa

Published Jun 24, 2016

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The SACP has weighed in on the Guptas’s attempted grab for UBank, vowing to help the National Union of Mineworkers (NUM) fight off the controversial family's advances.

SACP spokesman Alex Mashilo said: “The decision by the NUM not to dispose off workers’ ownership of UBank is very important. It stands diametrically opposed to apparent internal machinations to sell off workers’ property to the bourgeoisie to enrich themselves."

Independent Media revealed on Thursday how senior executives of Gupta-owned company Oakbay Investments had been hard at work to woo NUM leadership in order to persuade them to sell at least part of the union’s 50 percent stake in UBank.

UBank is controlled by Teba Trust, which is in turn jointly controlled by the NUM and the Chamber of Mines.

The Chamber said both trustees would have to agree to any sale of UBank.

“Work has been under way in UBank and with the support of Teba Trust to find ways to help recapitalise the bank,” the chamber said.

On Thursday, the NUM reiterated its rejection of Oakbay’s advances.

“When approached by Oakbay chief executive Nazeem Howa, the NUM general secretary David Sipunzi alluded to the fact that UBank was not for sale.

"However, Sipunzi said they had the right, like many bidders before them, to approach Teba Trust on the matter,” the union said.

UBank management also confirmed that while they were busy looking for ways to recapitalise the cash-strapped lender, an outright sale was not on the cards.

Chief executive Luthando Vutula said they needed to find a “suitable” and “strategic” partner to inject cash.

“Various companies have shown interest in the transaction. Some of the companies have not been successful.”

The lender needs R1 billion for a full recapitalisation, but in the short term needs a R152m cash injection just to hold on to their banking licence.

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