Wrap Text
Fulfilment of Suspensive Conditions Disposal of CEF and CPF Businesses to African Bank and Administrative Sanction
SASFIN HOLDINGS LIMITED
(Incorporated in the Republic of South Africa)
(Registration number 1987/002097/06)
Share Code: SFN
ISIN Number: ZAE000006565
("Sasfin" or "the Company")
FULFILMENT OF SUSPENSIVE CONDITIONS RELATING TO THE DISPOSAL BY SASFIN
BANK LIMITED OF ITS CAPITAL EQUIPMENT FINANCE AND COMMERCIAL PROPERTY
FINANCE BUSINESSES TO AFRICAN BANK LIMITED, AND NOTICE OF
ADMINISTRATIVE SANCTIONS
DISPOSAL BY SASFIN BANK LIMITED OF ITS CAPITAL EQUIPMENT AND COMMERCIAL
PROPERTY FINANCE BUSINESSES
Sasfin shareholders ("Shareholders") are referred to the circular and announcement published
on 25 March 2024 and the announcement released on SENS on 28 June 2024, wherein they
were advised that Sasfin, via its wholly owned subsidiary, Sasfin Bank Limited ("Sasfin Bank")
had entered into agreements ("the Disposal Agreements"), in terms of which, subject to the
fulfilment of certain suspensive conditions, it will dispose of its Capital Equipment Finance and
Commercial Property Finance businesses, as going concerns, to African Bank Limited ("ABL")
("the Disposal").
The board of directors of Sasfin ("the Board") is pleased to announce that on 1 August 2024,
final regulatory approvals, including from the Minister of Finance, have been obtained. The
Disposal for circa R3.25 billion based on the loan balances as at the end of June 2024, will
now be effected in accordance with the Disposal Agreements and regulatory implementation
requirements which will be fulfilled jointly with ABL.
ADMINISTRATIVE SANCTIONS
Shareholders are referred to note 25 of the Company's Annual Financial Statements for the
Financial Year ended 30 June 2023, wherein they were advised that Sasfin Bank had received
notifications from the South African Reserve Bank ("SARB") of its intention to impose
administrative sanctions for alleged historic non-compliance.
Shareholders are advised that on the 1st of August 2024, Sasfin Bank received notices of
administrative sanctions from the Prudential Authority of the SARB in terms of the Banks Act,
Financial Sector Regulation Act, and the Financial Intelligence Centre Act. The total net
sanctions amount to R160,644,103 (total of R209,692,132 of which R49,048,034 is
suspended).
These sanctions principally relate to allegations of historic non-compliance within Sasfin
Bank's discontinued foreign exchange business. Sasfin has and continues to work proactively
and transparently with the relevant authorities and regulators. Sasfin has taken legal advice
and is considering further representations which could result in a review or appeal of the
sanctions in terms of the provisions of the relevant regulations.
UPDATE ON SASFIN'S STRATEGIC RESET
The conclusion of the disposal of Sasfin Bank's Capital Equipment Finance and Commercial
Property Finance businesses marks an important step in Sasfin's strategic reset.
The proposed subscription for shares in Sasfin Wealth by WIPHOLD, Unitas and the Sasfin
Wealth management team, as well as the offer to shareholders and the delisting, is proceeding
as announced in the Terms Announcement issued on 15 July 2024.
Should the full net sanction need to be provided for, and post the African Bank Limited
disposal, the Sasfin Bank Capital Adequacy Ratio is expected to strengthen to circa 20%.
Further, Sasfin Bank will hold ample excess liquidity.
Johannesburg
6 August 2024
Sponsor
Questco Corporate Advisory Proprietary Limited
Date: 06-08-2024 08:30:00
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