The successful conclusion of the integration serves as a pivotal segue for Africanbank to re-enter the business banking arena, emphasising its long-standing commitment to re-imagining the role of a bank in the South African environment.
Section 54(3) of the Banks Act regulates the transfer of assets and liabilities and rights and obligations attendant upon an amalgamation of banks or the transfer of some or all its assets and liabilities by a bank to another bank or to a person approved by the Registrar of Banks.
Zweli Manyathi, chief executive officer of Business & Commercial at Africanbank said that: "Last year we announced the acquisition of GBL and that we would for a period of time run it as a fully owned subsidiary of ABL.
"The process of integrating GBL onto the ABL Business Banking platform has been successfully completed and we can now divisionalise GBL and return its trading license to the Regulator.
"This final stage marks a significant and audacious step in a long journey to bolster our business banking vision, particularly in the vibrant middle of the pyramid of the Business and Commercial sector. Our core philosophy remains a bank for the people, by the people, and serving the people. We pledge to further support entrepreneurs, aligning with our founding philosophy and providing them with not just banking solutions, but a comprehensive support network."
With the granting of the Section 54 dispensation, the acquisition, integration and divisionalisation of Grindrod Bank is now legally and procedurally complete.
The Grindrod deal announced in May 2022, in a deal valued at R1.5bn, is a pivotal component of Africanbank’s Excelerate25 strategy that seeks to redefine the business banking landscape and capitalise on Africanbank’s rich heritage, steering its path towards business diversification and evolution.
At the heart of Excelerate25 strategy is the ambition to establish a customer-centric, data and digitally-enabled personal and business banking business that is both, scalable and sustainable.
Kennedy Bungane, group chief executive officer of Africanbank, says: "The culmination of our integration with Grindrod Bank signifies not just a transaction, but the fusion of two banks committed to enhancing the lives of our people.
"This move is a testament to our unwavering belief in the potential of our nation and our commitment to crafting a holistic banking environment tailored to the needs of every South African, including industry-leading business banking solutions.
"Through this integration, we are cementing our promise to serve with integrity, passion, and a clear vision for the future. It is an important milestone, a reaffirmation of our pledge to empower dreams and fuel growth in every corner of our country."
"The full integration of Grindrod Bank into the Africanbank Group emphasises Africanbank’s unwavering support for entrepreneurs and businesses of every size and an aspiration to be a leading force in the business-banking sector," concludes Manyathi.
