m Cubed gathers new momentum
m Cubed Holdings Limited
Incorporated in the Republic of South Africa)
Registration number 1998/014568/06
Share Code: MCU
ISIN Code : ZAE000033353
Listed financial services company m Cubed and Momentum today announced that
agreement has been reached to merge the domestic multi-management businesses of
Momentum and m Cubed, to form a new asset management holding company.
`The merger will unlock value for m Cubed shareholders and create the
opportunity to share the fruits of the combined multi-manager`s potential,`
confirmed m Cubed Holdings group managing director John Storey.
`The business is having a constructive year and my management team welcome the
opportunity to further develop the core wealth and specialised investment
businesses. We are positive about the road ahead.
`We will continue to offer the multi manager solution as part of our asset
management product offering.
`In addition to its 50% stake in the new business, the proportion of m Cubed
that remains is substantial in its own right. It has developed a strong
reputation as one of the leaders in wealth management sector of the market,
where it competes at the upper end of the private client market through
innovation and service levels.
`Other areas of expertise include our Corporate Money Managers division, which
is our cash and treasury business; Policy Exchange, the dominant player in the
traded endowment policy sector in South Africa; the Employee Benefits business
which provides umbrella and private benefit schemes administration; and
Automated Outsourcing Services, which provides top of the range third party
processing capabilities.
`Added to which we maintain our international multi-manager operations - Esher
UK - which was rated the top multi manager in the UK for 2003.`
After injecting their multi manager business, the additional purchase
consideration payable in cash to m Cubed by Momentum, to take their stake up to
50%, will amount to R72m. m Cubed will have cash reserves of about R200 million
once the deal is completed.
/ends
Note to the editor:
For further information contact group managing director John Storey on 083-675-
2664
Date: 02/09/2004 05:30:07 PM Produced by the JSE SENS Department
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