PIC’s Isibaya Fund Sells Capitec Stake to Black-Owned Group

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The Public Investment Corp., Africa’s largest fund manager, sold shares in Capitec Bank Holdings Ltd. held through its Isibaya fund to a black-owned group. The shares fell as much as 6 percent.

“Capitec has been informed that the Isibaya Fund has reached agreement to dispose of its interest in Capitec,” the Johannesburg-based lender said in a statement on Tuesday. “It is an arm’s-length transaction facilitated by a third party through a bookbuild process.”

Investec Bank Ltd. was appointed to sell a stake of about 3.4 percent in Capitec, a South African provider of unsecured loans, to institutional investors, Investec said in a separate statement. It sold 3.7 million ordinary shares for 505 rand ($41.90) each at a discount of 6.5 percent from the closing price on Tuesday. The stock fell as much as 5.9 percent on Wednesday, and traded 3 percent lower at 523.80 rand as of 9:24 a.m. in Johannesburg.

African Bank Investments Ltd.’s failure in August helped Capitec increase market share as it gained customers from its larger competitor. Capitec’s stock has advanced more than 90 percent in the past six months, valuing the company at about 60 billion rand.

Client numbers increased by 856,000 to 6.2 million in 2014, Capitec said in March, with 16.8 percent of South Africans regarding it as their primary bank.

“Capitec supports the transaction as it enhances its black economic empowerment credentials,” it said.