CAPE TOWN – In a move to exit its major shareholding in African Bank, the SA Reserve Bank (SARB) has issued the lender with a request for proposal (RFP) to appoint a transaction advisor to assist with the future sale of its shareholding.
African Bank’s other shareholders are FirstRand Bank, Standard Bank, Absa, Nedbank, Capitec, Investec and the Government Employees Pension Fund (GEPF). These shareholders support the Reserve Bank’s decision to appoint a transaction advisor and to commence a process to exit its shareholding, according to a statement issued on Friday.
The Reserve bank acquired its 50 percent shareholding in African Bank Holdings in 2016 as part of the restructuring of African Bank Limited – renamed Residual Debt Services – after the bank was placed under curatorship in 2014.
In its role as shareholder, the Reserve Bank provided a capital injection of R5 billion to assist in financing the group’s operations.
The Reserve Bank had publicly stated that it was never its intention to hold this equity stake indefinitely, particularly because its shareholding created a potential conflict of interest between its role as a regulator of African Bank and as a major shareholder of the group.