JOHANNESBURG - Absa Bank on Tuesday confirmed its sale of the Edcon store card debtors’ book to RCS Group, a subsidiary of BNP Paribas Personal Finance South Africa (BNPP PF South Africa), subject to regulatory approvals.
The transaction includes the sale of Edcon’s store card debtors’ books in both South Africa and Namibia.
"The sale is positive for Absa as it will free up capital and management time to focus on executing against the strategy that Absa announced last year," said Arrie Rautenbach, CEO of Retail and Business Bank at Absa in an e-mailed statement.
"In terms of the strategy, our priority is to regain our leadership in core areas."
On Monday, BNPP PF South Africa told bondholders that RCS Cards had concluded an agreement with Absa to acquire its portion of the Edcon store card portfolio.
It said RCS had simultaneously entered into commercial agreements with Edcon for the rights to provide consumer finance products to customers, inclusive of credit cards, store cards and personal loans.
BNPP PF South Africa said the transaction cemented RCS as the pre-eminent provider of outsourced credit solutions in the region "providing an indication to the market that BNP Paribas Personal Finance is committed to South Africa".