BJM to sell UK, US units for R53m

Johannesburg - South African brokerage Barnard Jacobs Mellet Holdings [JSE:BJM] said on Monday it will sell its UK and US businesses for R53m to units of Indian financial services firm Religare Enterprises.

BJM, which was acquired by South African bank FirstRand in a $60m deal last month, said it no longer needs the units after being taken over.

The firm said in a statement it will its sell its BJM UK unit, which focuses on South African research and sales trading, for R33m.

Its BJM USA unit, a broker dealer that specialises in sales and trading of South African equities, will be sold for R20m, it said.

BJM, whose core business is stock broking and asset management, said it no longer requires institutional equity distribution capabalities in either market.

Religare last month said its board had approved a $431m capital raising, following a hefty net loss in the April-June quarter.

Shares of BJM were little changed at R4.65 at 14:09 pm, while Religare finished up 2.3% before the announcement.