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A consortium of leading South African banks together with the Public Investment Corporation (PIC) has made an offer for African Bank Investment Limited (Abil) insurance subsidiary Stangen.
Abil, the parent company to distressed lender African Bank, which went into curatorship last August under a mountain of bad debt, started business rescue proceedings on June 5. At the time it announced that it had not received any offers for Standard General Insurance Company, or Stangen, which offers credit life insurance for African Bank loans.
The company announced yesterday that it had received an offer last Wednesday from a consortium made up of Standard Bank, Absa, Firstrand, Nedbank, Investec, Capitec and the PIC. It has until Monday July 6 to consider the offer.
“This offer has various conditions and will be evaluated by the business rescue practitioners and the ABIL board of directors with the assistance of professional advisers as required,” the company said in a statement. It did not say what the conditions were, nor did it disclose the value of the offer.
ABIL plans to publish its results for the year to September last year and interim results for the six month to March by July 17. The company was not yet able to give a date when the suspension on trading of its shares will be lifted, as that is dependent on the successful conclusion of African Bank’s curatorship. Curator Tom Winterboer has said he aims to have the process of creating a “good bank” from the bank’s toxic assets completed by October 1.
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