Sanlam and TymeBank set to join forces in new credit venture

Sanlam Life and Sanlam Personal Loans and digital-only TymeBank have entered into agreements to establish a joint venture focused on unsecured personal loans with an embedded credit life offering.

The planned transaction was announced in a statement on Sens on Wednesday.

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The joint venture will operate through a new company, JVCo, that will originate and administer personal loans.

Sanlam Personal Loans currently offers fixed-rate loans of R5 000 to R300 000 over 12 to 72 months. Its loan book size was R5 billion as at 31 December 2024.

The deal

In terms of the proposed credit transaction, the existing Sanlam Personal Loan generation business, excluding its retail loan book, will be sold to JVCo in exchange for the issue of JVCo shares.

As part of the agreement, TymeBank will acquire a 50% stake in JVCo from Sanlam Personal Loans for R31.5 million.

TymeBank will also purchase half of Sanlam Personal Loan’s loan book for approximately R400 million, plus the capital value.

In addition, TymeBank will pay roughly R320 million for a reference share in Sanlam Personal Loans, entitling it to 50% of the credit life insurance profits from the JVCo book.

Sanlam notes that the transaction builds on the strategic relationship between Sanlam and Ubuntu-Botho Investments (UBI), Sanlam’s empowerment partner. UBI also holds an indirect stake in TymeBank through its interest in African Rainbow Capital Financial Services Holdings.

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Both parties see the venture as one that could offer growth opportunities with several strategic benefits.

“The collaboration with TymeBank is an important component of the Sanlam credit strategy. The two companies have complementary customer bases and skillsets, promising excellent growth opportunities,” Sanlam notes.

Other benefits

The proposed credit transaction also means Sanlam will gain access to TymeBank’s digital infrastructure and fraud management systems.

In addition, the transaction will enable access to both the Sanlam and TymeBank customer bases, offering cross-selling opportunities and scalable unsecured lending under their respective brands.

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The long-stop date for completing the transaction is 31 March 2026.

The transaction is subject to regulatory and other approvals, including those from the Prudential Authority and the competition authorities.

Sanlam stock closed at R86.03 – 0.20% lower than the previous day.

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