South Africa’s New Bank on the Block Goes Global

Private equity firm Apis Partners and a Phillipines-based family-owned conglomerate JG Summit, have bought 11.5% of TymeBank, SA’s largest digital-only bank, controlled by African Rainbow Capital (ARC), for R1.6bn. It’s a transaction that values TymeBank at R15bn — which isn’t bad going for a bank that launched just two years ago and now has 3-million customers. As part of the deal, TymeBank will establish a new bank in the Philippines in a joint venture with JG Summit. The JG Summit conglomerate, controlled by the Gokongwei family, owns 52 malls in the Southeast Asian country. All of these will be suitable points of distribution for TymeBank. JG Summit CEO Lance Gokongwei says he sees digital banking as the next growth area. His group hopes to learn more about TymeBank’s experience and to apply its technology and success to the Philippines. By law the new Tyme Philippines has to be majority local-controlled: 60% will be held by JG Summit and 40% by TymeBank.

SOURCE: BUSINESS DAY LIVE