| Fri 8 Jul 2005, 8:27 | | Sekunjalo Investments Limited Acquires 30% Stake I |
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Sekunjalo Investments Limited Acquires 30% Stake In Sharenet Group
Sekunjalo Investments Limited
(Incorporated In The Republic Of South Africa)
(Registration Number 1996/006093/06)
SHARE CODE: SKJ ISIN: ZAE000017893
(`SEKUNJALO` OR `THE COMPANY`)
08 JULY 2005
SEKUNJALO INVESTMENTS LIMITED ACQUIRES 30% STAKE IN SHARENET GROUP
Sekunjalo Investments Limited has acquired a 30% stake in the Sharenet Group of
companies as part of a strategic thrust into financial services. Mr Norman
Noland, The Executive Deputy Chairman of SEKUNJALO CAPITAL (PTY) LTD, the fast
growing Financial Services Division of SEKUNJALO INVESTMENTS LIMITED says that
he is extremely excited and proud of this transaction as Sharenet is one of the
leading online providers of financial information to the consumer market in
South Africa. The acquisition provides Sekunjalo with access to 40000 Sharenet
clients, as well as an established brand and market - leading IT infrastructure.
Sharenet (Pty) Ltd was incorporated in 1988 as Network Information Systems cc.
The company initially used the Beltel system introduced by Telkom to convey real
time share prices to the public before moving its systems online in 1995 and
becoming the first vendor of JSE prices via the Internet. In 1998 Sharenet
introduced online trading services. The company prides itself on the provision
of fast and reliable services, backed by unsurpassed customer support, to the
financial markets.
The Sekunjalo shareholding was acquired from the Dale Group, a private equity
partnership investing in the financial services, leisure and IT sectors of the
South African economy. Since acquiring a minority stake in Sharenet, Dale,
together with Sekunjalo Capital, has been involved in helping the company to
diversify away from a pure JSE-focus. The Sharenet group now incorporates an
electronic personal finance newsletter, Shareviews, and a product sourcing and
engineering platform, Sharenet Financial Solutions. This platform provides
Sharenet users with information on a broader range of financial products and
services.
Sekunjalo will add considerable value to the Sharenet Group. As a black owned
and managed, JSE-listed and long-term investor Sekunjalo is able to offer
corporate expertise, innovation and best practice to the companies in which it
is invested. Importantly Sekunjalo also provides the Sharenet group with access
to the growing black middle class. A recently released report by stockbroking
firm Merrill Lynch stated that black consumers were becoming increasingly
important in the marketplace and South Africa`s growing black middle class was
having a significant effect on the economy. According to the report, the
proportion of black South Africans in the top income bracket, those earning R12
000 and more, had increased from 16.5 percent to 19 percent in the past three
years.
Following on from the purchases of Life Assurance Company Bonlife and medical
aid administrator Benmed, this acquisition further bolsters Sekunjalo`s presence
in financial services, via it`s financial services subsidiary, Sekunjalo
Capital.
Sekunjalo Capital`s aim is to grow a niche financial services group, which is
able to develop and distribute low margin Insurance, Medical Aid Schemes and
Administration and Asset Finance to the poor and the emerging classes in South
Africa. The division will also focus on providing world-class Asset Management,
Private Equity and Corporate Finance advisory services. The Sharenet group fits
in with this strategy as its mature and impressive IT infrastructure will be
used to support traditional financial services activities, but can also be
adapted to provide innovative solutions for low-income earners.
Contact Details:
Melody Mjila
Group Communications Manager
Sekunjalo Investments Limited
Tel: 021 658 2700
Date: 08/07/2005 07:46:22 AM
Produced by the JSE SENS Department
