African Bank’s purchase of Eskom’s R5.7bn staff home loan book has fallen through due to the conditions precedent not being met.
The company originally announced the deal with Eskom Finance Company in December 2024. The sale of the loan book agreement regulating the proposed transaction was concluded in April 2025, subject to the fulfilment of certain conditions precedent.
“Due to the conditions precedent not being met, specifically in terms of the agreed timeline, the agreements automatically lapsed in terms thereof and are of no further force or effect,” African Bank said in a statement on Friday.
“This follows a decision by the board to consolidate and embed African Bank’s organic and inorganic growth of the past five years, drive efficiencies and extract more value from the acquisitions done between 2022 and 2025,” it said.
African Bank said it remains committed to its strategic intent for its personal banking business and continues to focus on delivering a compelling, sustainable value proposition for its customers.
In December 2024, Eskom picked African Bank as the preferred bidder for its staff home loan book and assets. The deal was initially expected to be concluded in the first half of 2025.
For Eskom, the deal fulfilled one of the conditions imposed by the National Treasury for a R254bn debt relief package to the entity. For African Bank, it strengthened its foothold in the secured lending space.
The transaction was in line with African Bank’s Excelerate25 strategy, with the acquisition diversifying the lender’s product offering and increasing its capabilities and presence in the secured home loan lending market.
The deal involved Eskom Finance Company and Nqaba Finance 1. Nqaba was incorporated in 2005 and buys eligible mortgage loans originated and serviced by Eskom Finance Company.
Launched in 2021, African Bank’s Excelerate25 strategy makes a case for a scalable, diversified and sustainable business with a compelling listing proposition.
The bank in 2023 set its sights on the lucrative home loans market, launching a pilot project for its staff.
Aiming at a JSE listing, the bank has been bulking up its portfolio over the past four years.
It bought Grindrod Bank for R1.5bn in May 2022, accelerating its entry into the South African business banking sector. That was followed by the R3.2bn purchase of Sasfin Bank’s commercial equipment finance and commercial property finance units.
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