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.