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MERCANTILE Bank Holdings and financial services company Sasfin Holdings said yesterday they were exploring the possibility of a merger.

Mercantile’s share price yesterday soared more than 9% to 24c after the announcement was made, while Sasfin’s share price remained static at R37,10.

Mercantile said yesterday the proposals could result in Mercantile’s parent, the state-owned Portuguese company Caiza Geral de Depositos, becoming a controlling shareholder of the entity.

Sasfin’s market capitalisation was about R1,16bn yesterday — while Mercantile’s was only slightly lower at R1,34bn.

Mercantile provides a range of financial services such as commercial and electronic banking, personal and corporate credit cards, asset management and insurance. Sasfin provides trade and equipment finance, corporate financial services, securitisations, treasury, financial and advisory investment banking, and freight services.

In the six months to last December, Sasfin’s headline earnings fell 27%, to R48m from R65m. Mercantile’s headline profit per share after tax fell to 4,1c for the year to December from 10,5c the previous year.

weste@bdfm.co.za