Johannesburg, 13 Dec 2005
Sasfin Holdings announced on Monday it would sell 10% of its banking division, Sasfin Bank, to a black economic empowerment group in a deal worth R66.7 million.
The empowerment group, InnoVent Investment Holdings, was founded by Zakhe Khuzwayo and DJ Khumbula as a black-owned and operated financial services holding company servicing the burgeoning asset rental market.
"We have spent a vast amount of time and effort in discussion with various potential BEE partners over the last couple of years, and eventually decided to deepen our relationship with the InnoVent group because of the positive and constructive working relationship established with the Innovent Rentals since its formation in November 2003, when we became a founding shareholder," said Sasfin CEO Roland Sassoon.
"We liked the business plan and were impressed by the people behind it, so we decided to back it. Since then the relationship has gone from strength to strength."
InnoVent Holdings' chairperson Zakhe Khuzwayo, says the transaction holds important strategic benefits for both parties: "InnoVent counts several blue-chip companies among its clients, and Sasfin has successfully niched itself as a financial services group targeting entrepreneurs and business owners. We believe this transaction gives us a much larger business footprint."
The transaction becomes effective on 1 January 2006.
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