ABSA GROUP LIMITED - MVELAPHANDA ACQUIRES 30% STAK
Abvest Holdings / Mvelaphanda Financial Services
Joint Media Release
15 January 2003
Mvelaphanda acquires 30% stake in Abvest
Tokyo Sexwale`s Mvelaphanda Financial Services, a subsidiary of Mvelaphanda
Holdings, has acquired a 30% interest in Abvest Associates Limited.
This significant empowerment transaction values Abvest at R120 million.
Abvest, an institutional investment firm within the Absa Group, forms an
integral part of the Absa Corporate and Merchant Bank (ACMB) product offering.
Rupert Pardoe, chairman of Abvest and Group executive director of Absa, says,
"When we established Abvest, an important component was that, together with
management and staff, we wanted to include an influential and broad-based
empowerment partner and Mvelaphanda certainly meets our criteria."
Abvest has R28 billion of assets under management, having grown by R14 billion
from July 2001.
Mvelaphanda`s Tokyo Sexwale, Mark Willcox and Mikki Xayiya will join the Board
of Abvest and are committed to assisting with the development of the business
and the formulation of business strategies.
Sexwale said: "Mvelaphanda has been seeking a significant partner as a
cornerstone of our financial services asset management business and we see
Abvest as that partner. Asset managers require stable, value adding shareholders
and we have made this investment for the long term as we expect Abvest to be a
very big player in the investment industry. Mvelaphanda has, for the first time,
committed its own resources to fund this material transaction. "
Abvest has been proactive in building a recognised team of proven investment
professionals. Over 60% of the staff are previously disadvantaged, making the
firm unique in the financial services industry in South Africa.
Abvest chief executive John Winship believes good progress has been made since
Abvest opened for business in Cape Town in 2001.
"The investment professionals and support teams have taken shape around robust
investment and administration processes. The emerging track record of investment
performance is excellent and whilst we fully acknowledge that this is a long-
term business, we have got off to a good start and have been rewarded with many
new mandates. The asset management industry has seen much consolidation but
Abvest, with its strong empowerment focus, rigorous systems and processes,
expects to play an important role in the industry," says Winship.
The transaction is still subject to the usual regulatory approval.
Ends.
Issued by Liezl Squier
Account Executive: Absa Corporate and Merchant Bank
Group Communication and Public Affairs
Tel: (011) 350-4291
Fax: (011) 350 - 3104
Cell: 083 407 6898
e-mail: liezls@absa.co.za
For more information contact John Winship
Abvest Associates Limited
Tel: (021) 657-6001
Fax: (021) 657-6101
E-mail: john.winship@abvest.com
Or
Mark Willcox
Mvelaphanda Financial Services
Tel: (011) 327-5430
Fax: (011) 327-5431
Cell: 082 823 6666
Date: 15/01/2003 11:30:40 AM Produced by the JSE SENS Department
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