Fin Minister approves Africanbank’s acquisition of Sasfin’s CEF and CP units

12-08-24 / Shelly Nxumalo

Fin Minister approves Africanbank’s acquisition of Sasfin’s CEF and CP units

Pretoria - South Africa's Minister of Finance, Enoch Godongwana, has officially approved Africanbank's proposed R3.25 billion acquisition of Sasfin Bank's Capital Equipment Finance and Commercial Property Finance businesses based on the assets as at 30 June 2024.

The acquisition, announced last year, represents another significant highpoint in Africanbank's diversification strategy. In 2022, Africanbank acquired both Grindrod Bank and Ubank in a landmark development that accelerated its return to business and commercial banking, while expanding its customer base and product range.

"We are pleased to have received the approval of the Finance Minister for this deal, which enables us to further sustainably scale and diversify the bank. This further delivers on our 'Excelerate25' strategy to expand our core by bringing in unique capabilities to serve the underserved entrepreneurs and enterprises in the business banking market segment, leveraging Africanbank's strong balance sheet," said Kennedy Bungane, Group CEO of Africanbank.

"We are thrilled to welcome a core team of highly competent seasoned professionals to the Africanbank family as we work together to enhance our client experience and take our offering to the next level."

According to Sasfin Holdings Limited CEO, Michael Sassoon, the deal with Africanbank is a mutually beneficial transaction that complements Sasfin's strategic imperatives.

"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," he said.

"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."