South African billionaire Patrice Motsepe’s African Rainbow Capital (ARC) on Friday obtained approval from the Prudential Authority of the South African Reserve Bank to acquire a majority stake of the new digital bank, TymeDigital.
In August, the black-owned financial services company, ARC, reached agreement to acquire 90 percent of TymeDigital for an undisclosed sum through its subsidiary, ARC Financial Holding Company (FinHoldCo).
FinHoldCo currently holds a 10 percent shareholding in TymeDigital, and the acquisition means that it will now wholly own the bank. The company’s strategic objective is to invest in insurance, asset management, specialist financial services and banking.
ARC said that the control of a digital bank was a critical step in driving synergies among the various companies in these four subcategories to enhance value creation.
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.
The bank has been trialing 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. Targeted client segments include unbanked and under-served clients as well as small and medium enterprises.
ARC has obtained all necessary regulatory approvals for the acquisition of the bank, including approval from the Competition Commission and the acquisition is therefore unconditional.
TymeDigital will change its name to TymeBank when it officially launches to the South African public.