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Royal Bafokeng ups stake in RMBH

Dec 12 2011 11:18 I-Net Bridge

Company Data

Remgro Ltd [JSE : REM]

Last traded R131.00
Change R0.25
% Change 0.19%
Cumulative volume 502,933
Market cap R63.02bn

Last Updated: 25/05/2012 at 19:32. Prices are delayed by 15 minutes. Source: McGregor BFA

 

Firstrand Ltd [JSE : FSR]

Last traded R25.00
Change R-0.06
% Change -0.24%
Cumulative volume 12.14m
Market cap R140.95bn

Last Updated: 25/05/2012 at 19:32. Prices are delayed by 15 minutes. Source: McGregor BFA

 

Rmb Holdings Ltd [JSE : RMH]

Last traded R32.84
Change R-0.04
% Change -0.12%
Cumulative volume 786,519
Market cap R46.36bn

Last Updated: 25/05/2012 at 19:32. Prices are delayed by 15 minutes. Source: McGregor BFA

 

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Johannesburg -  Royal Bafokeng Holdings will pay R5.3bn to lift its holding in two affiliates of banking group FirstRand [JSE:FSR], whose founders are selling down their stakes after four decades of dominance in South African finance.

Royal Bafokeng, a black-owned investment firm, will pay R5.3bn to increase its stake in RMB Holdings [JSE:RMH] and RMI Holdings to 15% from its present 5%, RMB said.

RMB Holdings owns nearly 34% of FirstRand, South Africa's second-largest bank. RMI Holdings owns stakes in some of South Africa's largest insurance companies, and was spun off from RMB Holdings earlier this year.

RMB's founders - GT Ferreira, Paul Harris and Laurie Dippenaar - are selling down their ownership after years of building and managing one of the most formidable banks in Africa's top economy.

"As we scale back our active involvement in the businesses, we, the founders have to face up to two main responsibilities - ensuring proper managerial succession, and appropriate succession as strategic shareholders," Ferreira said.

Royal Bafokeng will pay R4.5bn for 9% of each company, 5% of which will come from the founders and 4% from investment firm Remgro [JSE:REM], which also has ties to RMB's founders.

Royal Bafokeng has already purchased an additional 1% in both companies on the open market, bringing the total size of the deal to R5.3bn, RMB said.

Royal Bafokeng manages the commercial interests of the Royal Bafokeng nation, a community of 300 000 that owns 1200 sq km  in one of the world's biggest platinum deposits.

Royal Bafokeng's chief executive told Reuters last year the group aimed to take a stake of up to $1.5bn in one of the country's top banks over the next few years.

 
 
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