ROYAL Bafokeng Holdings, who earlier in the year acquired a 5% stake in RMB Holdings Limited (RMBH) and RMI Holdings Limited for R800-million, will be increasing its interest in both groups to 15% in a deal worth aboutR4.5-billion, it was announced yesterday.
RMBH, RMIRMI and Remgro Limited announced that RBH had reached agreement with Remgro and the founding shareholders (Founders) of RMBH and RMI, in terms of which RBH would acquire a portion of their RMBH and RMI shares.
RBH's original investment of 5.1% in RMBH and 4.9% in RMI concluded in April 2011 was premised on a joint vision between the parties of creating the pre-eminent black-influenced financial services group in Southern Africa, RBH increasing its shareholding over time and potentially extending the relationship to other areas of cooperation.
The roughly R5.3-billion investment further enhances RBH's strategic interest in one of South Africa's premier financial services groups.
This latest move will increase RBH's voting rights to 15% less one share in both RMBH and RMI.
The RBH transaction is a key next step for RMBH and RMI in enhancing the strategic relationship with RBH and ensuring the significant involvement of a highly regarded and reputable broad-based black economic empowerment partner in RMBH and RMI.
Furthermore, through retaining a significant shareholding in RMBH and RMI post the RBH transaction, Remgro and the Founders will continue to share in the success of a pre-eminent financial services group in conjunction with RBH.
RBH chief executive officer Niall Carroll said: "This investment constitutes a major step towards further diversifying the Royal Bafokeng nation's investment portfolio and creating a significant financial services platform.
"We look forward to working closely with RMBH, RMI, the Founders and Remgro to develop a pan-African financial services champion, firmly rooted in South Africa."
Said RMBH chairman GT Ferreira: "We believe that the Royal Bafokeng are worthy successors in joining us as custodians of two of South Africa's leading financial groups."
Royal Bafokeng increases stake
ROYAL Bafokeng Holdings, who earlier in the year acquired a 5% stake in RMB Holdings Limited (RMBH) and RMI Holdings Limited for R800-million, will be increasing its interest in both groups to 15% in a deal worth aboutR4.5-billion, it was announced yesterday.
RMBH, RMIRMI and Remgro Limited announced that RBH had reached agreement with Remgro and the founding shareholders (Founders) of RMBH and RMI, in terms of which RBH would acquire a portion of their RMBH and RMI shares.
RBH's original investment of 5.1% in RMBH and 4.9% in RMI concluded in April 2011 was premised on a joint vision between the parties of creating the pre-eminent black-influenced financial services group in Southern Africa, RBH increasing its shareholding over time and potentially extending the relationship to other areas of cooperation.
The roughly R5.3-billion investment further enhances RBH's strategic interest in one of South Africa's premier financial services groups.
This latest move will increase RBH's voting rights to 15% less one share in both RMBH and RMI.
The RBH transaction is a key next step for RMBH and RMI in enhancing the strategic relationship with RBH and ensuring the significant involvement of a highly regarded and reputable broad-based black economic empowerment partner in RMBH and RMI.
Furthermore, through retaining a significant shareholding in RMBH and RMI post the RBH transaction, Remgro and the Founders will continue to share in the success of a pre-eminent financial services group in conjunction with RBH.
RBH chief executive officer Niall Carroll said: "This investment constitutes a major step towards further diversifying the Royal Bafokeng nation's investment portfolio and creating a significant financial services platform.
"We look forward to working closely with RMBH, RMI, the Founders and Remgro to develop a pan-African financial services champion, firmly rooted in South Africa."
Said RMBH chairman GT Ferreira: "We believe that the Royal Bafokeng are worthy successors in joining us as custodians of two of South Africa's leading financial groups."