RMBH sells interest in Glenrand

Johannesburg - RMB Holdings (RMBH) has concluded an agreement to sell its 12.3% interest in Glenrand MIB (GMB) to Trustee Board Investments for R43.1m or R1.20 rand per Glenrand MIB share.

RMBH had during 2007/8 advised shareholders that it no longer regarded Glenrand MIB as a "core" element of its investment holdings and when appropriate, RMBH would give consideration to disposing of such interest.

This conclusion was driven inter alia, by the relative size of its investment in Glenrand MIB and its inability to extract synergistic benefits between Glenrand MIB and RMBH's other investments.

Trustee Board Investments already holds an interest of some 9% in Glenrand MIB. It is a private investment group that has been in existence for some 16 years.

Chaired by Abrie du Preez, it invests in broad financial services businesses where it perceives there to be long term growth potential. The shareholders and directors of Trustee Board Investments have extensive experience in South Africa's short term insurance sector, RMBH said on Tuesday.

The purchase consideration was set after taking due consideration of the size of the holding being sold and exceeds the volume weighted average price per Glenrand MIB share (the "vwap") during calendar year 2008 of 118c per share.

The purchase price represents a premium of 54% over the vwap per Glenrand MIB share of 78c for the 30 trading days ended January 16 2009.

The effective date of the transaction is February 16 2009.

The transaction will not have a material effect on the results of neither RMBH nor Glenrand MIB.

- I-Net Bridge