ARC gets approval for TymeDigital acquisition
Marking its exposure to the digital banking industry.
African Rainbow Capital (ARC), the investment group controlled by South African billionaire Patrice Motsepe, said on Friday that it has obtained approval from the Prudential Authority of the South African Reserve Bank to acquire a majority stake of the new digital bank, TymeDigital.
“All necessary regulatory approvals for the acquisition have been obtained, including approval from the Competition Commission and the acquisition is therefore unconditional,” the company said in a statement.
In August, ARC reached an agreement with TymeDigital to acquire a 90 percent stake in the latter for an undisclosed sum through its subsidiary, ARC Financial Holding Company (FinHoldCo).
The acquisition is to be affected through ARC’s 50.1 percent stake held in FinHoldCo, following which FinHoldCo will become the 100 percent owner of TymeDigital.
TymeDigital is a registered South African bank with a strong fintech focus. It was previously majority owned by the Commonwealth Bank of Australia, a banking group in its core markets of Australia and New Zealand.
FinHoldCo previously held a 10 percent shareholding in TymeDigital.
TymeDigital has ambitions of providing affordable and accessible banking services in South Africa. It has targeted clients that include the so-called unbanked and under-served as well as small and medium enterprises.
According to ARC, TymeDigital will change its name to TymeBank when it officially launches to the South African public.