The Black Management Forum Investment Company (BMFI) has acquired 26% of the local arm of Australia`s Computershare.
Computershare, a Top 100 company on the Australian Stock Exchange, is a financial services and technology provider to the global securities industry.
In terms of the deal, signed this morning, BMFI has subscribed for a direct 26% shareholding in Computershare SA, partly for cash, funded from BMFI`s own resources, and partly through a five-year dividend sacrifice.
Stan Lorge, Computershare SA`s MD, says he cannot disclose the price of the stake. However, given the fact that the Australian parent has invested more than R100 million in the company, and given that turnover is more than R200 million, the price is understood to be more than R30 million.
"BMFI`s biggest contribution will be in helping us to secure new business," Lorge says. He adds that the new shareholder will also assist with management expertise and Computershare`s procurement policy, as well as the transformation of the business.
BMFI will also have two directors on the Computershare SA board and participate at board subcommittee level.
BMFI MD Campbell Bomela says his company`s policy is not to invest and sit back. "We want to be involved at board level and have an influence on strategy," he says. The company also becomes involved at operational level and engages in a two-way transfer of skills.
He adds that Computershare fits in perfectly with BMFI`s investment strategy.
Computershare SA, which manages more than 2 million shareholder accounts, provides share registry services, custodial services, employee share plan management and shareholder analysis. It is the only non-bank central securities depository participant in SA.
Lorge says the company`s future business strategy is to become a one-strop shareholder services provider. It plans to make acquisitions to extend its range of services and also plans to expand into Africa.
He says the African expansion is dictated to by the client base. "As they move, we need to move too." The company has been looking at Ghana recently, but nothing has come of that yet.
Following the latest deal, Computershare UK, which is wholly owned by Computershare Australia, sees its stake in the local company diluted from 84% to 63.6%. Other shareholders are FirstRand Bank and Old Mutual plc, each of whose shareholdings have diluted from 8% to 5.2%
Lorge says Old Mutual and FirstRand support the deal and want to continue as minority shareholders.
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