African Rainbow Capital (ARC) has obtained the go-ahead from the Prudential Authority of the South African Reserve Bank (SARB) to acquire a 90% stake in digital bank TymeDigital from Commonwealth Bank of Australia.
With the regulatory approval of SARB, the company received all regulatory nods to proceed with the transaction.
African Rainbow Capital acquisition given the go ahead
Previously, the deal received the green light from the Competition Commission.
The transaction, whose financial terms were undisclosed, will be carried out through ARC subsidiary ARC Financial Holding Company (FinHoldCo).
Once completed, FinHoldCo will become the sole owner of TymeDigital. Earlier, FinHoldCo owned a 10% stake in TymeDigital.
TymeDigital, which focuses on small businesses and emerging middle class consumers, will be rebranded as TymeBank upon commencing operations.
Initially, the bank is expected to provide transactional banking and debit card services to customers.
Gradually, it plans to add credit cards and lending services to its portfolio.
TymeDigital received a banking licence in South Africa in September last year. The move marked the first such issuance by the SARB since 1999.
After securing the licence, TymeDigital CEO Sandile Shabalala said: “We will offer South Africans the ability to open accounts and transact securely, within minutes.”
Currently, TymeDigital offers money transfer services in collaboration with Pick n Pay and Boxer stores.