Capital targets business market


Capital targets business market

Published Date: 2018-06-19 | Source: Stephen Gunnion | Author: Stephen Gunnion | Comments

Capital targets business market

Capitec is one of a number of parties interested in buying Mercantile as it expands its services

Capitec has made a non-binding offer to buy Mercantile, the business bank owned by Portuguese lender Caixa Geral de Depositos. Caixa has put Mercantile up for sale as it divests of non-core operations in order to meet European capital requirements. Mercantile banks small- to medium-sized businesses and its customers include about 12 000 entrepreneurs.

Related article: : Capitec closes in on 10 million customers

Capitec said it was one of a number of interested parties whose offers were being considered by the Portuguese state-owned bank. Mercantile confirmed it had received a total of 18 offers, including Capitec, Nedbank and a consortium led by the Public Investment Corporation. The price tag is speculated to be in the region of R5 billion.

Capitec said it would no commence a formal, in-depth due diligence extreme to determine whether the opportunity presented by Mercantile fulfils its expectations to build the Capitec Bank business bank strategy.

Its shares ended 2.2% lower at R846 yesterday.

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