Patrice Motsepe's ARC assumes control of TymeDigital
South African billionaire Patrice Motsepe's African Rainbow Capital is set to acquire 90% of TymeDigital for an undisclosed sum
South African billionaire Patrice Motsepe’s African Rainbow Capital (ARC) is set to acquire, through ARC’s 50.1% held subsidiary, ARC Financial Holding Company (FinHoldCo), 90% of TymeDigital for an undisclosed sum, pending regulatory approval. FinHoldCo will become the 100% owner of the entity.
TymeDigital is a registered South African bank with a strong FinTech focus. It is majority owned by the Commonwealth Bank of Australia (CBA), a leading banking group in its core markets of Australia and New Zealand. FinHoldCo currently holds a 10% shareholding in TymeDigital.
It was reported late last month that CBA was looking at reeling in its investments in other markets to focus on Australia and New Zealand, with speculative reports floating around pointing to it selling off Tyme as part of that strategy.
ARC Investments is a listed entity that is 51.7% owned by ARC, which in turn is 100% owned by Ubuntu-Botho Investments (UBI), a broad-based black economic empowerment entity.
UBI also owns a 13.5% shareholding in Sanlam, the diversified financial services group, which makes it the single largest shareholder in Sanlam.
TymeDigital has been trialling its operations as it works towards an official launch.
It aims to provide affordable and accessible banking services through a growing network of partners, including Pick n Pay, its leading distribution partner with 750 Pick n Pay and Boxer stores.
Targeted client segments include unbanked and underserved clients as well as small and medium enterprises. Competitive technology allows the bank to on-board clients with greater ease relative to its competitors and keep bank charges more affordable than what SA banking clients pay in general.
According to CBA’s financial results for the 2018 financial year, TymeDigital posted a net loss of A$78 million for the period (R770 million), and its non current assets have been impaired by A$91 million (R900 million).