Standard Bank is to acquire 25% of RCS Investment Holdings from fashion retailer Foschini for R358,1-million, with an option to acquire a further 20% stake in the subsidiary.
Foschini said on Monday that it had always been its intention that as the business of RCS Investments expanded and its product offerings moved outside the ambit of a typical retailer consumer lending business, a banking partner would be found that could assist to expand the operation, building on the core lending competencies already developed by RCS Investments.
“RCS Investments believes that, as a partner, SBSA [Standard Bank South Africa] will be able to assist it to grow its business to new levels by introducing new products which it would not enter into without a banking partner. SBSA will also play a role in treasury management and opening up the RCS business to new markets.
“The RCS business will now combine best practice in the Foschini group gained through many years of lending into the broader South African middle market with the banking know-how of SBSA. RCS Investments believes this combined strength in the two complementary disciplines will enable it to explore exciting new consumer lending possibilities,” Foschini stated.
The business of RCS Investments was established five years ago when the Foschini group of companies began an initiative to expand its range of financial services.
The company had achieved a pretax profit of R194-million for the year ended March 2005. — I-Net Bridge