Launch of new African Bank, Good Bank, delayed
Following the failed acquisition of insurance company, Stangen (owned by African Bank’s former parent, African Bank Investments Limited), the launch of African Bank Good Bank, originally set for February next year, has been delayed to April.
The plan was simple, in theory: African Bank Investments Limited (Abil) was to sell Stangen to African Bank for around R1.4 billion, with African Bank then selling it on to the new group for the same amount. However, an urgent interdict prevented the sale from going through, alleging that the price was too low.
In light of the deal falling through, African Bank will instead be establishing an insurance cell captive structure, delaying the start date of Good Bank. Although African Bank is still running the numbers with regard to possible profits, curator Tom Winterboer has said this process is almost complete.
African Bank was placed under curatorship on 10 August 2014 by then-Governor of the South African Reserve Bank, Gill Marcus, and Tom Winterboer was appointed curator. According to Winterboer, Good Bank is effectively already running, and volumes are increasing. Operations are being headed up by CEO designate, Brian Riley.