South African billionaire Patrice Motsepe’s African Rainbow Capital (ARC) on Wednesday confirmed that it has reached agreement to acquire 90% of the new digital bank, TymeDigital, for an undisclosed sum through its subsidiary, ARC Financial Holding Company (FinHoldCo).
TymeDigital is a registered South African bank with a strong fin-tech 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 trialling 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.
FinHoldCo currently holds a 10% shareholding in TymeDigital, and the acquisition means that it would now wholly own the bank. The acquisition is subject to approval by the regulatory authorities, including that of the Prudential Authority of the South African Reserve Bank.
FinHoldCo has a strategic objective 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.