The South African Reserve Bank (SARB) has said it is considering going public with its African Bank shares after failing to find a suitable buyer.
On June 1, 2021, the SARB announced that it had begun the process of disposing of its 50% stake in African Bank Holdings Limited (ABHL), given the potential conflict as regulator, significant shareholder and lender of last resort. .
The SARB appointed a set of transaction advisers and followed a two-track approach which focused on two potential exit options – namely a sale to investors and an initial public offering (IPO).
The SARB has invited interested investors, both local and international, to submit expressions of interest in acquiring the shareholding of the SARB. All expressions of interest have been reviewed and consultations have taken place with relevant stakeholders and regulators involved in this process.
“After due consideration of the expressions of interest received, the SARB has concluded that none of the interested investors would be suitable to acquire the SARB stake at this stage,” the central bank said on Tuesday (March 22).
“SARB will work closely with ABHL and the rest of the shareholders and thus proceed with the IPO process. The timing of the IPO launch will depend on prevailing market conditions.
The run-up to the IPO will provide ABHL with the opportunity to continue its successful turnaround and execute its accelerated growth strategy, he said.
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