• Keep it clean

    Changes to the law are part of an ongoing effort to keep auditing credible, says Bernard Agulhas.

  • National death insurance?

    A new report shows Life Esidimeni isn't an isolated case, and NHI won't help, says Marius Roodt.

  • Silence of the scram

    Absa and FNB testify on why they refused to meet ministers over Gupta account closures.


Rand Merchant Investment increases stake in OUTsurance

May 18 2017 18:19

Johannesburg -Rand Merchant Investment Holdings advised shareholders on Thursday that the company has increased its shareholding in OUTsurance.

RMI's shareholding in OUTsurance will increase from 84.1% to 87.5%.

Rand Merchant Investment and OUTsurance have entered into an agreement in terms of which RMI will dispose of a 49% interest in RMI's wholly-owned subsidiary, Main Street 1353, to OUTsurance.

The proposed transaction will result in the 29.9% shareholding Main Street acquired in Hastings Group on 1 March 2017 being held in a 51%:49% partnership between RMI and OUTsurance.

The proposed transaction will be concluded on similar terms to RMI's initial investment in Hastings. OUTsurance will fund the proposed transaction through surplus cash and the issue of new shares at an effective OUTsurance equity value of R29.2bn.

The proposed transaction remains subject, inter alia, to the requisite regulatory approvals.

As set out in OUTsurance's interim results, certain members of the executive team have recently become non-executive directors. This change in roles involved them indicating their intention to dispose of a portion of their OUTsurance shares.

RMI has exercised its pre- emptive rights to acquire these shares. The management acquisition was executed at an effective OUTsurance equity value of R28.9bn.

RMI issued 20 000 000 new shares to existing RMI shareholders and the proceeds were utilised to fund the management acquisition.

Following publication of this announcement, caution is no longer required to be exercised by RMI shareholders when dealing in their RMI shares.

Read Fin24's top stories trending on Twitter:

Follow Fin24 on Twitter, Facebook, Google+ and Pinterest. 24.com encourages commentary submitted via MyNews24. Contributions of 200 words or more will be considered for publication.



Company Snapshot

Money Clinic

Money Clinic
Do you have a question about your finances? We'll get an expert opinion.
Click here...

Voting Booth

Did you find Markus Jooste's testimony convincing?

Previous results · Suggest a vote