CAPE TOWN - African Rainbow Capital (ARC), a financial-services firm started by Patrice Motsepe is set to acquire 90% of TymeDigital bank for an undisclosed sum.
The acquisition will be done through ARC’s 50.1% held subsidiary, ARC Financial Holding Company (FinHoldCo) and it will become the 100% owner of the bank.
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 Australia and New Zealand.
Currently, FinHoldCo holds a 10% shareholding in TymeDigital.
Reports by Business tech said that last month, CBA was looking for investments in other markets to focus on Australia and New Zealand.
Additionally, some speculative reports suggested that they were also going to sell off Tyme as part of that strategy.
ARC Investments is a listed entity that is 51.7% owned by ARC, which in turn is 100% owned by Ubuntu-Botho Investments (UBI), a broad-based black economic empowerment entity.
UBI also owns a 13.5% shareholding in Sanlam, making it the single largest shareholder in Sanlam.
The acquisition comprises TymeDigital in South Africa and the related intellectual property and patents.
Following the finalisation of the acquisition, ARC may consider introducing new shareholders in the current structure, which may include management, it said in a statement on SENS, on Wednesday the 8th August 2018.
It aims to provide affordable and accessible banking services through a growing network of partners, including Pick n Pay, its leading distribution partner with 750 Pick n Pay and Boxer stores.
Targeted client segments include unbanked and underserved clients as well as small and medium enterprises.
According to the bank, its competitive technology allows it to help clients with greater ease and keep bank charges more affordable than its competitors.
CBA said that the sale of TymeDigital is still subject to approval by the regulatory authorities, including that of the Prudential Authority of the South African Reserve Bank.
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- BUSINESS REPORT ONLINE