| Mon 12 Dec 2011, 10:43 | | RMH/RMI - RMB Holdings Limited/Rand Merchant Insur |
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RMI RMH
RMI RMH
RMH/RMI - RMB Holdings Limited/Rand Merchant Insurance Holdings Limited - Media
Release
RMB Holdings Limited
(Incorporated in the Republic of South Africa)
Registration number 1987/005115/06
Share code: RMH
ISIN: ZAE000024501
("RMBH")
Rand Merchant Insurance Holdings Limited
(Incorporated in the Republic of South Africa)
Registration number: 2010/005770/06
Share code: RMI
ISIN: ZAE000153102
("RMI")
MEDIA RELEASE
"We believe that the Royal Bafokeng are worthy successors in joining us as
custodians of two of South Africa`s leading financial groups" GT Ferreira -
Chairman
In a transaction facilitated by Remgro, entrepreneurs GT Ferreira, Paul Harris
and Laurie Dippenaar have signaled the next step along the continuum of a
generational change at RMBH and RMI, the two financial services groups that they
founded and nurtured over almost four decades.
Royal Bafokeng Holdings ("RBH") - who earlier in the year acquired a 5% stake in
the two groups - will be increasing its interest in both RMBH and RMI to 15%.
In a transaction valued at some R 4,5 billion, RBH will be acquiring c 9% of
each group -
- c 5% from the Founders (ie. Ferreira, Harris and Dippenaar); and
- c 4% from Remgro.
This, together with a further c 1% already acquired in the open market for some
R0,8bn, will bring RBH`s interest up to 15%.
After the transaction Remgro and the Founders remain significant shareholders in
both groups and, in conjunction with RBH, will continue to share in their
fortunes.
(Please see www.rmbh.co.za or www.rminsurance.co.za for shareholder analysis)
GT Ferreira, chairman of the RMBH and RMI, states that: "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."
"Firstly, the performance and market rating of the Group`s underlying franchises
provide an indication that the financial community recognises the quality and
entrepreneurial ability of the next generation of managers that are in place."
In the second instance, Ferreira says: "Given the size and status of the
underlying franchises, it would have been relatively easy to merely find new
shareholders with sufficient financial resources. However, our quest was to
find an investor who not only had sufficient resources but who, in addition,
ascribed to a similar investment philosophy and value set to that which we had
tried to nurture over the years".
This he believed, the Founders had found in RBH, whom they regarded "as worthy
successors, who together with us and Remgro, will in future act as joint
custodians of two of South Africa`s jewels."
Ferreira regards the RBH transaction as 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.
Ferreira highlighted the role played by Remgro, who, as long term partners of
the Founders, agreed to make available a portion of its holdings to enable RBH
to build a larger strategic stake in both RMBH and RMI.
Remgro CEO Thys Visser commented "Remgro`s Founder Dr Anton Rupert defined
partnership as the joint creation of wealth and the fair sharing thereof. We
believe the partnership with RBH will live up to these words. We are delighted
to solidify our relationship with RBH as strategic investors in RMBH and RMI,
which we see as a strong vote of confidence in RMBH, RMI and their respective
underlying businesses. This pro-active transaction with a strong, sustainable
partner will be in the best interest of all stakeholders."
In a separate release, RBH Chief Executive Officer Niall Carroll is quoted as
saying: "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."
Ends
RMBH / RMIH Contacts:
Mandy Laemmle tel (011) 783 2070 or 082 822 2494
Corcom Marketing
Peter Cooper tel (021) 658 9360 or (082) 570 1400
Chief Executive Officer
Date: 12/12/2011 09:59:03 Produced by the JSE SENS Department.
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