African Bank up on sale talk

Investors piled into African Bank stock yesterday soon after the company announced it was in talks to get rid of Ellerines.

Its shares had climbed more than 20% by mid-afternoon, trading as high as R8.47 after opening at R6.97.

The unsecured lender announced on the Stock Exchange News Service that it "has entered into negotiations regarding the possible disposal of Ellerine Holdings and its subsidiaries which, if successfully concluded, may have a material effect on the price of the company's securities".

Ellerines is a loss-making furniture retailer that African Bank has been trying to shed.

The company has seen its bad loans spiral as its low-income client base struggles to make ends meet.