Sanlam and Tyme Bank form retail credit joint venture

Sanlam Limited (JSE:SLM) and Tyme Bank Limited have agreed to form a joint venture focused on unsecured personal loans with embedded credit life offerings. Sanlam Life and Sanlam Personal Loans (SPL) will establish a new company (JVCo), to which SPL's loan generation business will be sold in exchange for JVCo shares. Tyme Bank will acquire 50% of JVCo shares from SPL for ZAR 31.5 million and purchase 50% of SPL's retail credit loan book for approximately ZAR 400 million plus the capital value. Tyme Bank will also share 50% of the credit life insurance results. The transaction, subject to regulatory approvals, aims to leverage Tyme Bank's IT infrastructure and digital capabilities to enhance Sanlam’s credit strategy, and will give SPL the opportunity to reinvest in a broader strategy. The longstop date for the deal is 31 March 2026.