Published: Monday, 12 December 2011 16:10
RMB Holdings Limited, RMI Holdings Limited and Remgro Limited announced today that Royal Bafokeng Holdings (Pty) Limited has reached agreement with Remgro and the founding shareholders of RMBH and RMI, in terms of which RBH will acquire a portion of their RMBH and RMI shares
RMB Holdings Limited (“RMBH”), RMI Holdings Limited (“RMI”) and Remgro Limited (”Remgro”) announced today that Royal Bafokeng Holdings (Pty) Limited (“RBH”) has reached agreement with Remgro and the founding shareholders (“Founders”) of RMBH and RMI, in terms of which RBH will acquire a portion of their RMBH and RMI shares (”RBH Transaction”).
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 co-operation.
The circa R5.3 billion investment further enhances RBH’s strategic interest in one of South Africa’s premier financial services groups and increases 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. The underlying companies are market leaders, with strong brands and good management teams which, in concert, should underpin the economic sustainability of the Royal Bafokeng Nation.
“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.”
Russell and Associates
+27 11 880-3924
+27 82 892-8052
Note to editors:
Royal Bafokeng Holdings (Pty) Limited (RBH) is responsible for the management and development of the commercial assets of the Royal Bafokeng Nation (RBN), with the objective of maximising returns to enable the RBN to deliver sustainable benefits to the community.
The Royal Bafokeng Nationis a unique African community where tradition meets modernity. Located in the Rustenburg Valley in the North West Province, the 29 villages of the Royal Bafokeng Nation boast some of the most innovative approaches to sustainable development in Africa. These include holistic education reform, the use of sport to generate social and financial returns, and converting mineral resources into the world’s leading community-based investment company.
The King of the Royal Bafokeng Nation is Kgosi Leruo Tshekedi Molotlegi, 36th in a long line of visionary traditional leaders. Thanks to the pioneering spirit of the King’s ancestors, the Bafokeng community owns the rights to the largest known reserves of platinum and chrome in the world. Plan 2035 and the Masterplan, the strategic blueprints for the community’s future, aim to create a socially, economically, and environmentally sustainable community true to its African heritage and traditions.