African Bank Holdings has acquired Sasfin Bank’s capital equipment finance unit and Sasfin Private Equity Investment Holdings Proprietary’s commercial property finance business for R3.2 billion.
- The acquisition is part of African Bank’s strategy to enhance its lending business and diversify its revenue streams, asset classes, and risk profile.
- African Bank aims to offer customers transactional accounts, internet banking, and mobile banking options through this acquisition, expanding its service offerings.
- African Bank made two other acquisitions in the past year, purchasing Grindrod Bank for R1.5 billion and UBank for R80 million.
- The acquisitions are part of African Bank’s efforts to recover from a crisis in 2014, which led to a central bank bailout.
- African Bank is planning an initial public offering in 2025, and these acquisitions are expected to strengthen its position and appeal to potential investors.
- The acquisition of Sasfin units is a significant step towards African Bank’s growth and expansion plans, positioning the bank for future success in the lending sector.