African Bank announces acqusition of Sasfin Bank's commenrcial divisions
Johannesburg - African Bank Limited (African Bank) has today announced that it has entered into a binding head of agreement with Sasfin Bank Limited (SBL) to acquire their Capital Equipment Finance (CEF) and Commercial Property Finance (CPF) businesses, for around R3,26 billion.
African Bank said Sasfin will dispose of its CEF Business, which is comprised of, inter alia, the loan book of SBL, together with all rights, title and interest in respect thereof, in relation to the CEF Business. The goodwill attributable to the CEF Business; the trade receivables of SBL in relation to the CEF Business, to the extent applicable; and such employees of SBL will transfer with the CEF Business in terms of section 197 of the Labour Relations Act No 66 of 1995 (‘LRA’.
In terms of its CPF Business, which is comprised of, inter Alia, the loan book of SBL, together with all rights, title and interest in respect thereof, in relation to the CPF Business (‘CPF Loan Book, the goodwill attributable to the CPF Business as well as the trade receivables of SBL in relation to the CPF Business, to the extent applicable; and such employees of SBL as will transfer with the CPF Business in terms of section 197 of the LRA.
"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 'Excelerate25' strategy to expand our core and establish our footprint in the business banking market leveraging African Bank's balance sheet and strong capital levels," said Kennedy Bungane, CEO African Bank.
"We are thrilled to welcome a core team of highly competent seasoned professionals to the African Bank family as we work together to enhance our client experience and take the offering to the next level," Kennedy continues.
This deal comes on the back of the transaction concluded in November 2022 whereby African Bank acquired Grindrod Bank, in a move to re-enter the business banking market and deliver on the vision of the Bank's pioneering founders and provide banking to entrepreneurs as part of their strategy.
"Over the past year Sasfin has undertaken a detailed strategic review of its business. Our strategy is to focus on our core businesses where we have strong capabilities and competitive advantages," says Michael Sassoon, CEO of Sasfin Holdings Limited. "This has resulted in us entering into this mutually beneficial transaction."
Sassoon continues, "While it is difficult to part with the people and businesses that we have grown significantly over an extended period of time, we are confident that this deal will present new opportunities for our clients and teams."