KHAYA SITHOLE: IPO for sale of African Bank points to credible oversight
In a surprising development last week, the SA Reserve Bank announced that after a lengthy process aimed at finding a buyer for its stake in African Bank it had not found a “suitable” suitor and would therefore resort to the traditional markets through an initial public offering (IPO) — when market conditions become conducive.
The sale of the Bank’s stake in African Bank is aimed at resolving the conflict of interest conundrum that has existed since 2014. Back then, as the bank was facing collapse, the Bank came up with an unusual solution. In its capacity as regulator, with an interest in maintaining the stability of the sector at large, it proposed a solution that involved the Bank itself, other banks that were competitors of African Bank, and the Government Employees Pension Fund (GEPF)...
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