African Bank Survival in Doubt as Billions Erased in Drop
This article is for subscribers only.
African Bank Investments Ltd., South Africa’s largest unsecured loan provider, lost about 90 percent of its market value after forecasting a record loss and saying it needs to tap investors for $791 million of fresh capital.
The shares plummeted 81 percent to 51 cents as of 4:41 p.m. in Johannesburg, adding to yesterday’s 61 percent drop. Coronation Fund Managers Ltd., the bank’s biggest shareholder, fell as much as 6.5 percent to the lowest intraday level in five months. Capitec Bank Holdings Ltd., the bank’s largest competitor in South Africa, declined as much as 2.3 percent.