Johannesburg - Trustees of cash-strapped UBank are in a race against time to raise funds in a bid to stave off a potential takeover by the Guptas.
The Star understands that a crucial meeting of the bank’s owners, Teba Trust, will be convened on Tuesday to finalise plans to recapitalise, which is in line with a Reserve Bank directive.
Teba Trust is administered jointly by the Chamber of Mines and the National Union of Mineworkers (NUM).
The Star revealed on Thursday how executives of the Gupta-owned Oakbay Investments have been lobbying leaders of NUM to back their move to buy UBank.
Their efforts included a R1 million “donation” to the union to cover costs for its central committee meeting, the first time Oakbay had given money to NUM.
The bank’s management said on Thursday it needed R1 billion to fund its growth plan and recapitalisation.
However, in the short term, UBank needs R152m to keep its banking licence.
The Chamber of Mines said both trustees would have to jointly agree to any sale of a stake in 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.
UBank chief executive Luthando Vutula said they needed to find a suitable and strategic partner for a much-needed cash injection.
“UBank’s capital-raising exercise and process is being handled by our transaction advisers. Various companies have shown interest in the transaction. Some of the companies have not been successful,” Vutula said.
“We are cognisant of the fact that a couple of months ago Oakbay Investments confirmed in some national newspapers that it had unsuccessfully made an approach to buy UBank.
“As far as UBank’s executive and board are concerned, this position has not changed.”
Oakbay first tried to buy the bank in 2014 but its approaches were rebuffed. Its latest attempt to get UBank appears to be motivated by the closure of Oakbay’s bank accounts by the country’s four biggest banks.
Read more: When did Guptas decide to pursue own bank?
Absa, Nedbank, Standard Bank and FNB have cut ties with the family’s businesses. At least one of the banks has cited possible exposure to foreign and domestic anti-corruption laws as a reason for dropping the controversial family.
Oakbay hadn’t responded to detailed questions sent to the company on Tuesday, but chief executive Nazeem Howa was quoted in various media denying claims of an attempt to buy UBank.
He did, however, confirm that he recently phoned NUM general secretary David Sipunzi, as revealed by The Star on Thursday. Sipunzi had made it clear that the phone call was about Oakbay’s interest in buying the bank.
NUM on Thursday reiterated its rejection of Oakbay’s advances.
“When approached by Oakbay chief executive Nazeem Howa, NUM general secretary David Sipunzi emphasised that UBank was not for sale.
“However, the general secretary stated to them that they have a right, like many bidders before them, to approach Teba Trust on the matter,” NUM said.
The Star