Fin24

Chinese buy into Shanduka group

2011-12-22 15:15

Cape Town - The China Investment Corporation (CIC) has bought a 25 percent, R2 billion shareholding in the Shanduka empowerment investment group.

Shanduka said in a statement on Thursday that CIC would acquire its shares primarily from exiting shareholders, Old Mutual Private Equity and Investec.

"This partnership will allow us to jointly explore future investment opportunities in South Africa and other parts of Africa," said Shanduka chairman, Cyril Ramaphosa.

"We believe it will present broader opportunities for both organisations and be mutually beneficial."

Shanduka's black-owned and controlled status will not be affected by the transaction.

Old Mutual Private Equity (OMPE) as a selling shareholder has been a shareholder in Shanduka since 2006.

Jacci Myburgh, a portfolio manager at OMPE, said the investment had been a very profitable one for the Old Mutual Private Equity Fund II, and that the disposal of its interest in Shanduka was part of its regular course of activities which included finite terms for its funds' investments.