JOHANNESBURG, JAN 18 (Reuters) – Blackstar Group
, a London-listed, Africa-focused investment firm, has
paid $58 million for just over a quarter of South Africa’s
Mvelaphanda Group, a month after Mvela shareholders had
blocked a buyout offer.
Blackstar said in a statement it acquired 28 percent of
Mvela, a black-owned investment firm, for 470 million rand ($58
million). It acquired the shares from Cape Town-based asset
manager Coronation Fund Managers.
As part of the deal, Blackstar CEO Andrew Bonamour and
another executive will get seats on Mvela’s board, while
Bonamour will also become the firm’s interim CEO.
Blackstar, which is listed on London’s AIM market for
smaller companies, has been looking to further boost its
presence in Africa.
Mvela is a well known name in South Africa, having been
founded by prominent politician and business Tokyo Sexwale. The
company has been spinning off its investments for the past two
years.
Its remaining investments include a stake in South African
media group Avusa. Getting a stake in Mvela would give
Blackstar access to a well known firm in South African business,
and one with black ownership credentials.
South African firms are required to increase their black
ownership in order to receive lucrative government contracts.
Mvela shareholders last month blocked a $215 million cash
and share buyout offer from Blackstar.
Continued…
