Real Africa Holdings Limited- Acquisition By Rah O
Wealth Management (Proprietary) Limited ("AWM")
Real Africa Holdings Limited
(Registration number 1994/003919/06)
(Incorporated in the Republic of South Africa)
("RAH")
Share Code : RAH
ISIN Code : ZAE000008702
ACQUISITION BY RAH OF AN INTEREST IN ADVANCED WEALTH MANAGEMENT
(PROPRIETARY) LIMITED ("AWM")
Introduction
Gensec Bank Limited is authorised to announce that RAH has acquired a 40%
interest in the issued share capital of AWM ("the acquisition"). AWM was
founded after the successful management buy-out of the Financial Planning
division of professional services firm, PriceWaterhouseCoopers. Its business
comprises a consulting practice providing professional and independent
consulting services to high net worth individuals and corporates in respect
of personal financial planning, corporate health care, employee benefits and
cash management requirements.
Rationale
The acquisition provides RAH with an entry into the dynamic consulting
services industry through a business that is well established with a
national network and management and professional staff that is highly
regarded by AWM clients and the market in which they operate. The
acquisition falls within one of RAH's key focus areas and presents the
opportunity for both RAH and the controlling shareholders of AWM to add
significant value through the introduction of a reputable Black Economic
Empowerment shareholder. Added to this, the entrepreneurial flair and
commitment of the existing management team of AWM is anticipated to result
in the fast tracking of the development of already successful business
offerings that should result in above average growth achievements.
The acquisition should also contribute to the reconstituted AWM being in a
position to give previously disadvantaged members of the population entry
channels to the industry it serves.
Management
Operational management of AWM will remain unaffected and RAH will be
represented on the Board through the nomination of three non-executive
directors. RAH is expected to make a substantial contribution at the
strategic planning level of the business' management.
Financial Effects
The acquisition is not expected to have any material effect on the net asset
value and earnings per share of RAH in the short term. However, given the
quality of the business and its people and the good prospects with RAH
committed as a strategic shareholder, the acquisition will become an
important and valuable asset to RAH that may contribute to significant value
enhancement to RAH shareholders.
Conditions precedent
All conditions precedent to which the acquisition was subject has been
fulfilled.
General
This announcement is published for information purposes only.
Houghton
20 November 2001
Profile Group (Pty) Ltd. has taken care in preparing all information on this website, but does not accept any liability for errors or out-of-date information.
