Capitec is selling its rental finance unit.
Capitec is selling its rental finance subsidiary to Sasfin Capital for R201 million in cash, saying the business no longer aligns with the bank's core strategic focus.
The bank announced that Sasfin Capital, a wholly owned subsidiary of Sasfin Holdings, will acquire 100% of the issued share capital of Capitec Rental Finance (CRF), which provides asset financing solutions to businesses across a range of industries.
Capitec acquired CRF in 2019 as part of its R3.56 billion acquisition of Mercantile Bank, a deal that expanded the retail banking group's offering into business banking and financing for small and medium-sized enterprises.
"The board believes CRF would benefit from integration with a specialist operator," Capitec said. It said Sasfin, through its interest in Sunlyn, has decades of experience in rental finance and is better positioned to maximise the value of the business.
