Covid-19 puts paid to Sasfin’s deal with Arise

print

Covid-19 puts paid to Sasfin’s deal with Arise

Published Date: 2020-06-02 | Source: Stephen Gunnion | Author: Stephen Gunnion

Covid-19 puts paid to Sasfin’s deal with Arise

The niche bank and financial group says shareholders should still exercise caution due to the potential disposal of its stake in Efficient Group.

Sasfin says talks to sell a stake to European investment fund Arise have ended due to Covid-19. The niche bank and financial services group said discussions were terminated due to the current volatility in global markets caused by the pandemic.

Last November, the niche bank and financial services group said it was in preliminary talks with Arise which, if successful, would have resulted in it become a shareholder of reference. A shareholder of reference refers to a significant shareholder, though not necessarily a controlling one, that invests in a company for the long-term.

Arise is an investment and development company that was established by Norway's state-owned private equity company Norfund, Dutch development bank FMO and Dutch multinational financial services company Rabobank to hold their respective investments in banks across sub-Saharan Africa. It aims to own strong, locally-owned financial services providers serving SMEs, the rural sector and client who have not previously had access to financial services. Sasfin's roots are in banking small businesses and providing asset finance, although it has expanded into retail and online banking.

Sasfin said shareholders should still exercise caution due to the potential disposal of its stake in Efficient Group. Last week, it said it had received an unsolicited, conditional non-binding R5.60 per share offer for its entire minority interest in the financial services group, valuing its holding at about R146 million. It said it had entered into exclusive negotiations with the offeror.

The bank's shares rose 3.6% to R14.50 yesterday.





Similar Stories