Capitec Bank Holdings agreed to sell its subsidiary, Capitec Rental Finance (CRF), to Sasfin Holdings for R201 million.
Capitec will provide a R1.6 billion secured credit facility to CRF to fund its ongoing rental receivables book.
The bank originally acquired CRF in 2019 through its purchase of Mercantile Bank.
Capitec stated that the profitable unit no longer aligns with the company's core strategic focus.
The board believes integrating CRF with Sasfin’s Sunlyn business will maximize growth through specialist expertise.
This move allows Capitec to streamline operations while maintaining indirect market exposure via the credit facility.