Listing mooted for troubled African Bank
The Reserve Bank says it plans to list African Bank rather than sell it directly to investors after finding expressions of interest from prospective buyers ‘unsatisfactory’.
The central bank, which owns 50% of African Bank, had appointed corporate financiers including Rothschild, Bank of America and Moshe Capital, to advise it on a planned two-phase process that would enable it to exit its stake through a sale to investors or via a possible listing.
Business Day reports that it had raised concern about its triple conflict of interest in African Bank, given that it is the largest shareholder, the regulator and the lender of last resort to the bank, which was placed under curatorship in 2014 after its predecessor almost collapsed.
However, it appears the bank ruled out selling its stake in African Bank directly to investors after being unimpressed by their indicative offers.
‘After due consideration of the expressions of interest that were received, the (Reserve Bank) has concluded that none of the interested investors would be suitable to acquire the (bank’s) shareholding at this stage,’ the Reserve Bank said in a statement yesterday.
It said it ‘will work closely’ with African Bank Holdings Ltd and the rest of the shareholders and thus proceed with the initial public offering process.
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