Eskom finalizes sale of staff home loan book to African Bank

Eskom finalizes sale of staff home loan book to African Bank

Eskom Holdings SOC Ltd has finalized the sale of its staff home loan book to African Bank Limited (African Bank). The transaction, announced on 5 December 2024, includes the acquisition of Eskom Finance Company SOC Limited (EFC) staff home loan portfolio, related assets, and Eskom's stake in Nqaba Finance 1 (RF) Limited by African Bank [1].

The parties have now signed the sale agreements, satisfying key conditions of the transaction and several preliminary requirements. Eskom and African Bank will proceed to submit the necessary filings to the Competition Commission for regulatory approval. The sale is part of Eskom's strategy to streamline operations and focus on its core mandate, fulfilling a condition set by the National Treasury under the debt relief program [1].

Eskom's Chief Financial Officer, Calib Cassim, stated, "Finalizing the sale agreements marks a significant step in Eskom’s journey to streamline operations and focus on its core mandate. This transaction not only supports our strategic goals but also fulfills one of the conditions set by the National Treasury under the debt relief programme, which requires the disposal of non-core assets. We appreciate the constructive engagement with African Bank and remain committed to ensuring a smooth transition that delivers value to our stakeholders" [1].

Eskom remains committed to transparent communication and will continue to update stakeholders as the transaction progresses.

Reference List:
[1] https://www.eskom.co.za/progress-update-on-the-sale-of-eskom-finance-company-soc-limited/