RMB embarks on major asset revamp

2010-12-15 12:52

Johannesburg - Investment firm RMB Holdings [JSE:RMH] said it plans to list its insurance unit, as part of a broad restructuring that includes taking a bigger holding of its unit FirstRand [JSE:FSR] and selling a R2.5bn stake to the Bafokeng.

RMB, a holding company with stakes in some of the largest financial services firms in Africa's top economy, said in a statement on Wednesday it will list its insurance businesses under the name RMI Holdings.

Before the listing, RMB will buy a 45% stake in insurance firm Outsurance from its unit FirstRand, doubling its holding in Outsurance to 90%.

It will also raise its stake in another group insurer, MMI Holdings (MMI), and lift its holding in FirstRand, South Africa's second-largest bank, to 34% from 30%.

RMB will sell a 5% stake to black investment group Royal Bafokeng Holdings for R2.5bn.

Royal Bafokeng CEO Niall Carroll told Reuters last month the investment group would like to spend up to R10bn over the next few years to take a stake in a top South African bank.

Shares of RMB jumped 3.2% to R36.72 in Wednesday midday trade. FirstRand was up 1.2% at R18.87, while MMI Holdings was down 1.3%  at R16.38.