Eskom signs deal with African Bank to offload staff home loan portfolio
This strategic acquisition by African Bank signals a transformative period for Eskom as it seeks to comply with government requirements while potentially reshaping the financial landscape for its employees.
Image: Siphiwe Sibeko/ Independent Newspapers Archives
Eskom Holdings SOC Ltd has confirmed the acceptance of a binding offer from African Bank Limited. This agreement encompasses the acquisition of Eskom Finance Company SOC Limited's (EFC) staff home loan portfolio, along with related assets and Eskom's stake in Nqaba Finance 1 (RF) Limited.
This landmark transaction, first announced in December last year, via the Stock Exchange News Service (SENS), marks a significant milestone for both entities involved.
The signing of the sale agreements does not only complete a critical step in Eskom's strategy to streamline its operations but also aligns with the directives set forth by the National Treasury.
The Treasury has mandated that Eskom dispose of non-core assets as a condition of its debt relief programme, reinforcing the financial utility of this transaction.
Calib Cassim, Eskom’s Chief Financial Officer, expressed optimism regarding the deal: “Finalising the sale agreements marks a significant step in Eskom’s journey to streamline operations and focus on its core mandate.
"This transaction not only supports our strategic goals but also fulfils one of the conditions set by the National Treasury under the debt relief programme, which requires the disposal of non-core assets.
"We appreciate the constructive engagement with African Bank and remain committed to ensuring a smooth transition that delivers value to our stakeholders.”
With the agreements now signed, both Eskom and African Bank are set to proceed with necessary filings to the Competition Commission for regulatory approval, which is now the next hurdle in the process.
IOL