JOHANNESBURG – Billionaire Patrice Motsepe's African Rainbow Capital (ARC) on Friday obtained approval from the Prudential Authority of the South African Reserve Bank to acquire a majority stake of the new digital bank, TymeDigital.
In August, the black-owned financial services company, ARC, reached agreement to acquire 90 percent of TymeDigital for an undisclosed sum through its subsidiary, ARC Financial Holding Company (FinHoldCo).
FinHoldCo holds a 10 percent shareholding in TymeDigital, and the acquisition means that it will now wholly own the bank. The company's strategic objective is to invest in insurance, asset management, specialist financial services and banking.
ARC said that the control of a digital bank was a critical step in driving synergies among the various companies in these four subcategories to enhance value creation.
TymeDigital is a registered South African bank with a strong fintech focus. It is majority owned by the Commonwealth Bank of Australia (CBA), a leading banking group in its core markets of Australia and New Zealand.