BJM soars on transaction

Johannesburg - Shares in Barnard Jacobs Mellet Holdings [JSE:BJM] rose 5% on Monday, after the financial services firm announced it would be selling its securities division to emerging markets investment bank Renaissance Capital.

On Monday BJM shares were up 20c at 400 cents per share at midday.

Fin24.com had earlier speculated that BJM was looking to offload its securities business to focus on the institutional division.

"This transaction is a strategic quantum leap for BJM Securities, presenting it with a strong and enviable growth path into frontier markets. We believe that Renaissance represents a best-fit for BJM Securities for its unique geographic footprint, its winning culture and adventurous spirit," said BJM Group CEO Andile Mazwai in a press statement.

BJM said Renaissance Capital will bring to BJM Securities acclaimed international research, a strong balance sheet and an unparalleled emerging market footprint. Renaissance Capital has top-ranked operations in Lagos, Accra, Lusaka and Nairobi and has been trying to up its profile in South Africa.

Earlier this year, the firm appointed Clifford Sacks as CEO of South Africa and head of Pan-African equities. Sacks joined from Merrill Lynch, where he was co-CEO South Africa and Sub-Saharan Africa.

Sacks will head up the new entity.

"BJM Securities' high-calibre team, market-leading research franchise and client-centric approach make it a perfect business and cultural fit for Renaissance Capital," said Sacks.

"When completed, the acquisition will mark a major step in building the first truly Pan-African investment banking franchise stretching from the Cape to Cairo."

 - Fin24.com