Africapacity Group Offers To Buy Embattled VBS Bank

Africapacity Group
VBS Mutual Bank in Thohoyandou. Picture: Sethembiso Zulu/EWN

The VBS Mutual Bank might be facing liquidation, but this has not staved off investor interest with at least one offer to buy the bank.

A black-owned investment company, Africapacity Group, has made contact with the Reserve Bank, Treasury and Parliament with an offer to purchase the bank for R2 billion.

The offer to buy the bank came almost a year since the Reserve Bank published a forensic report into the collapse of VBS Mutual Bank, that blew the lid on how it was looted of R 1.8 billion.

The Africapacity Group, which is based in Menlyn, Pretoria, says VBS is a good investment and can continue to serve a more rural market.

In its offer to purchase letter seen by Eyewitness News and addressed to the Reserve Bank, the company claimed to have raised capital in excess of US$575 million which equates to about R7 billion.

Company chief investment officer Matome Ratlabala said: “From our funds, we can turn VBS into one of the major banks and we’ve got enough capital. We’re saying we’re ready to take this bank up.”

Provisional liquidator Anoosh Rooplal confirmed the unsolicited offer but said discussions have been general.

“We have always and will continue to engage with parties that have made unsolicited offers to buy various assets of the bank We have not entered into any advanced stages of negotiations with any party at this point.”

EWN