Eskom and African Bank have signed agreements for the sale of Eskom Finance Company SOC Limited.
“As announced in the Stock Exchange News Service (SENS) notice on 5 December 2024, Eskom Holdings SOC Ltd accepted a binding offer from African Bank Limited (African Bank) for 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 (the Disposal).
“The parties have now signed the sale agreements, satisfying a key condition of the transaction, along with several other preliminary requirements,” said Eskom.
In December, the parties were in the process of concluding a sale and purchase agreement with the disposal being subject to various conditions precedent, including board and regulatory approvals.
In an update on Thursday, the power utility said the milestone will see it and African Bank proceed to submit the necessary filings to the Competition Commission for regulatory approval.
“Finalising 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 fulfils 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," said Eskom’s Chief Financial Officer, Calib Cassim.
Eskom said it remains committed to transparent communication and will continue to update stakeholders as the transaction progresses. -SAnews.gov.za
