The South African government is set to have a controlling stake in African Bank’s good bank when it opens in February 2016.
The South African Reserve Bank (SARB) will own a 50% stake in the lender, while the Government Employees Pension Fund will have a 25% holding.
The remainder of the stake will be taken up by a consortium of other banks.
The subordinated debt holders of African Bank, which went into curatorship in 2014, will have the option to convert the debt to shares if they elect to do so.
However, state control is expected to reduce as the good bank will list in three years, offering new shareholders an opportunity to buy into it.
According to curator Tom Winterboer, shareholders of the failed African Bank Investments, the parent of African Bank, would lose everything but would receive preference to purchase shares in the good bank after it listed.