AFRICAN BANK LIMITED - ABKI - African Banks Proposed Acquisition of Majority of the assets and liabilities of Ubank (Proposed Transaction)

ABKI - African Bank’s Proposed Acquisition of Majority of the assets and liabilities of Ubank (Proposed Transaction)

AFRICAN BANK LIMITED
(Incorporated in the Republic of South Africa)
(Registered Bank)
(Registration No. 2014/176899/06)
LEI: 2549008X8SL1B1J86F98
Company code: ABKI
(the “Bank” or “African Bank”)


AFRICAN BANK’S PROPOSED ACQUISITION OF THE MAJORITY OF THE ASSETS AND LIABILITIES
OF UBANK LIMITED (“UBANK”) (“PROPOSED TRANSACTION”)

African Bank is pleased to announce that it is the successful bidder to acquire the majority of
Ubank’s disclosed assets and liabilities and take on its employees on a going concern basis on the
closing of the Proposed Transaction.

Ubank is a well-established financial services provider with a strong presence across selected
mining and rural communities. Ubank has continued to operate in the ordinary course of business,
despite it being placed under curatorship on 16 May 2022. African Bank will not be acquiring the
Ubank legal entity, and any residual assets and liabilities will remain with its legal entity.

The Proposed Transaction fits into African Bank’s Excelerate25 strategy of building a scalable,
diversified and sustainable banking business with a compelling listable proposition, that is true to
its founding philosophy of being “a bank for the people, by the people, serving the people”.

Ubank has a unique market position within the mining sector and a distribution footprint that
complements African Bank’s existing national offering. The lending book of Ubank can be
efficiently absorbed into African Bank’s larger lending book. African Bank has been working to
diversify funding sources and has added significant retail deposits over the last few years. The
addition of Ubank’s deposit base would accelerate this effort.

The Proposed Transaction would give customers of Ubank immediate access to African Bank’s
nationwide distribution footprint. Ubank customers will be migrated to African Bank’s MyWORLD
product which offers a higher degree of personalisation, lower fees and greater competitive value.

Following an extensive due diligence process, the parties have agreed on a total cash consideration
payable to Ubank, in terms of the Proposed Transaction, of up to R80 million.

The Proposed Transaction is subject to the fulfilment of various conditions precedent including,
but not limited to, regulatory approvals which include that of the Minister of Finance.

The effective date of the transaction will be the first business day of the calendar month
immediately following the calendar month during which the conditions precedent is fulfilled.
Further information will be made available in due course as various milestones are reached.

26 August 2022

Debt Sponsor
RAND MERCHANT BANK (A division of FirstRand Bank Limited)

Date: 26-08-2022 07:05:00
Produced by the JSE SENS Department. The SENS service is an information dissemination service administered by the JSE Limited ('JSE'). 
The JSE does not, whether expressly, tacitly or implicitly, represent, warrant or in any way guarantee the truth, accuracy or completeness of
 the information published on SENS. The JSE, their officers, employees and agents accept no liability for (or in respect of) any direct, 
indirect, incidental or consequential loss or damage of any kind or nature, howsoever arising, from the use of SENS or the use of, or reliance on,
 information disseminated through SENS.