Competition Tribunal clears TymeBank–Sanlam loan book deal

The Competition Tribunal has given the go-ahead for a tie-up between TymeBank and Sanlam, paving the way for the creation of SanlamTyme JVCo and the partial sale of Sanlam Personal Loans’ R5-billion unsecured loan book.

The Tribunal unconditionally approved the proposed merger on 30 July.

The deal will see Tyme Bank acquire shares in SPL – soon to be renamed SanlamTyme JVCo –along with half of SPL’s unsecured personal loan portfolio, known as the SPL sale loan book. Both Tyme Bank and SPL will also provide loan facilities to the new venture to fund lending activities.

Following the merger, SanlamTyme and the SPL sale loan book will be jointly controlled by TymeBank and Sanlam Limited.

SPL, a subsidiary of Sanlam Life, offers unsecured personal loans from R5 000 to R300 000 on repayment terms of one to six years. In 2024, SPL posted R111.5 million in net financial service results and contributed R1.1 billion to Sanlam’s net asset value.

TymeBank, South Africa’s digital-only bank with 11 million customers and more than 800 self-service kiosks nationwide, is controlled by TymeBank Holdings, ultimately owned by Ubuntu-Botho Investments (UBI) – Sanlam’s strategic empowerment partner. The two companies already have close ties.

In September last year, Sanlam Life acquired a 25% interest in African Rainbow Capital Financial Services Holdings Proprietary Limited (ARC FSH). ARC FSH holds an effective 46% in TymeBank and is the company through which UBI indirectly holds its financial services interests of UBI.

According to a SENS announcement issued in May, under the transaction:

• SPL will establish JVCo to run its personal loan operations, excluding the existing retail loan book, in exchange for shares.
• TymeBank will buy 50% of JVCo for R31.5m.
• Tyme Bank will acquire half of SPL’s retail loan book for about R400m plus capital value.
• TymeBank will also pay about R320m for a reference share entitling it to half of the credit life insurance profits from the JVCo loan book.

Sanlam says the deal aligns with its credit strategy, combining its reach with TymeBank’s tech-driven banking platform and fraud-prevention capabilities. The joint venture will give both access to each other’s customer bases, enable cross-selling, and support competitive unsecured lending under both brands.

The transaction’s longstop date is 31 March 2026, with Sanlam planning to reinvest the proceeds into its broader growth strategy.