The Reserve Bank recently announced that it might sell its 50% shareholding in African Bank during the next year or two.
Capitec CEO Gerrie Fourie, said that the bank’s shareholding in African Bank was the result of an industry initiative to restructure the bank, and not an investment strategy. The only bank that might be interested in African Bank is Capitec, as there was an overall overlap between the two bank’s customers, but it had just bought Mercantile Bank, the analyst said.Among the biggest reasons investors might shy away from buying into African Bank are the tough economic conditions and the client base that the bank is exposed to.Investors would remain wary of African Bank, given that it hadn’t proved its new model.
There wasn’t any single shareholder that bought the stake that Old Mutual had wanted to sell in Nedbank. So Old Mutual reduced its stake in Nedbank from 52% to a 19.9% minority stake by distributing the extra Nedbank shares to Old Mutual shareholders.The banking analyst said that African Bank was starting to building up a track record and looked like a better investable prospect, especially considering its growing base of retail deposits.
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