* Bafokeng ups stake to 15 pct
* RMB founders, Remgro sellers
(Adds details, shares)
JOHANNESBURG, DEC 12 – South Africa’s Royal Bafokeng
Holdings will pay $650 million to lift its holding in two
affiliates of banking group FirstRand, whose founders
are selling down their stakes after four decades of dominance in
South African finance.
Royal Bafokeng, a black-owned investment firm, will pay 5.3
billion rand ($652 million) to increase its stake in RMB
Holdings and RMI Holdings to 15 percent from 5
percent now, RMB said in a statement.
RMB Holdings owns nearly 34 percent of FirstRand, South
Africa’s second-largest bank. RMI Holdings owns stakes in some
of South Africa’s largest insurance companies, and was spun off
from RMB Holdings earlier this year.
RMB’s founders — GT Ferreira, Paul Harris and Laurie
Dippenaar — are selling down their ownership after years of
building and managing one of the most formidable banks in
Africa’s top economy.
“As we scale back our active involvement in the businesses,
we, the founders have to face up to two main responsibilities —
ensuring proper managerial succession, and appropriate
succession as strategic shareholders,” Ferreira said in a
statement.
Royal Bafokeng will pay 4.5 billion rand for 9 percent of
each company, 5 percent of which will come from the founders and
4 percent from investment firm Remgro, which also has
ties to RMB’s founders.
Royal Bafokeng has already purchased an additional 1 percent
in both companies on the open market, bringing the total size of
the deal to 5.3 billion, RMB said.
Continued…
