African Bank has announced the acquisition of Sasfin’ capital equipment and commercial property finance businesses for R3.2 billion.
The deal signals African Bank’s diversification into business banking and enables Sasfin to focus on its core business of enabling the two South African finance institutions to focus on its core specialist finance and wealth banking businesses.
“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 strategy to expand our core and establish our footprint in the business banking market leveraging African Bank’s balance sheet and strong capital levels,” Kennedy Bungane, CEO African Bank, said Friday morning.
Under the deal, “a core team of highly competent seasoned professionals” from the Sasfin businesses will now be joining African Bank family.
African Bank’s acquisition of the two Sasfin business banking entities comes on the back of another transaction concluded nearly a year ago in which the South African finance institution acquired Grindrod Bank.
This enabled African Bank to re-enter the business banking market, helping it shore up its quest to provide banking to entrepreneurs.
Michael Sassoon, CEO of Sasfin Holdings Limited said the company has over the past year been strategically reviewing its strategies.
“Our strategy is to focus on our core businesses where we have strong capabilities and competitive advantages. This has resulted in us entering into this mutually beneficial transaction,” Sassoon said.
BUSINESS REPORT