Lebashe Financial Services increases its stake in RainFinMay 25, 2018 News and Blog Lebashe Financial Services , Stake in RainFin
Bloomberg reported yesterday that Lebashe Financial Services increased its stake in RainFin as part of the company’s ambition of building a black-owned bank.
Lebashe will boost its holdings in RainFin by 24% to 74% for an undisclosed sum, the company said in a statement on Thursday. RainFin bought back the 49% held by Barclays’ South African unit, with Lebashe acquiring its 51% stake in February last year.
Gaining bigger control of RainFin gives Lebashe access to a business seeking to win market share from traditional banks by offering services via mobile phones and the internet to cut costs. The country’s biggest lenders have been criticised for not doing enough to extend credit and increase the participation of the majority black population int he economy.
This deal follows a series of transactions already concluded by Lebashe. This includes the purchase of 5.3% of Capitec Bank Holdings Ltd., and a R3.2 billion deal with technology group EOH Holdings ltd. Companies have been selling to black investors as part of South Africa’s drive to reverse years of discrimination caused by white-minority rule, which ended in 1994. It also bought TSS Capital, an investment and corporate advisory boutique.
The full article can be read here.