FirstRand buys founders' shares

Johannesburg - FirstRand announced on Wednesday that senior executives of FirstRand Limited and RMBH Limited have agreed, in a private transaction, to purchase FirstRand and RMBH ordinary shares from the group's founders GT Ferreira, Laurie Dippenaar and Paul Harris.

The agreed transaction value amounts to R398.4m, and is based on share prices of R26.84 for RMBH and R16.06 for Firstrand, representing the 30 day volume weighted average prices ruling in mid October 2009 when discussions were initiated.

Commenting on the transaction Dippenaar said: "Much of FirstRand's and RMBH's success since inception can be attributed to the "owner manager" culture that has been embedded throughout the Group over many years. This culture has been critical to the spirit of innovation and entrepreneurism that has differentiated the businesses from peers."

"The transference of ownership of these shares to the senior management of both RMBH and FirstRand goes some way towards creating the next generation of "owner managers" to take the businesses forward, and in addition ensures that management and shareholders' interests continue to be closely aligned."

Sizwe Nxasana, CEO of FirstRand, said that the senior team at FirstRand was confident of the Group's strategy and growth prospects.

"This transaction underlines the senior team's commitment to producing superior returns to shareholders" he said.

- I-Net Bridge