26 September 2016
African Rainbow Capital (ARC), a black owned and controlled investment company which forms part of the Patrice Motsepe stable, announced today that it will, subject to regulatory approvals, invest in a 29,9% share of CMB International Ltd (CMB International), the listed holding company of independent investment banking and advisory firm Bravura.
CMB International and its subsidiaries provide corporate finance, structured solutions and property investment services to clients in Southern Africa and Australia. The company is listed on the Stock Exchange of Mauritius Ltd and also holds a secondary listing on the Namibian Stock Exchange. Since its incorporation in August 2015, CMB International has acquired six financial services businesses, including Bravura in December 2015.
Kamal Taposeea, the Chairman of the CMB International board says that the company intends to continue to grow exponentially through acquisitions. “Having ARC as a strategic shareholder and the capital injection received through the ARC investment will accelerate and underpin this growth strategy.”
ARC is a subsidiary of Ubuntu-Botho Investments (Pty) Limited (UBI), a broad based black empowerment investment holding company created in 2004 as Sanlam’s empowerment partner. The ARC team members, including Patrice Motsepe, Johan van Zyl, former CEO of Sanlam, and Johan van der Merwe, former CEO of Sanlam Investments, hold a wealth of experience in the financial services industry and empowerment world, which they leverage to create strong returns for shareholders and make a positive contribution to South Africa.
“Our investment in Bravura, through CMB International, supports our commitment to enable equity-based transformation in the property and financial services industries in Africa and South Africa, benefiting the economy as a whole,” says Johan van der Merwe, ARC Co-CEO. “This investment forms part of our strategy to focus our initial portfolio on both financial services and compelling private equity placements to become a fully integrated diversified financial services business. The capital we provide will enable CMB International to grow both organically and acquisitively to deliver exceptional returns on equity.”
Van der Merwe foresees that many synergies will be unlocked between ARC’s various investments and CMB International. CMB International, through its various
subsidiaries including Bravura, will not only provide corporate finance and structured solutions services as required across the group’s investments,
but can also become the platform for the smaller financial services investments in South Africa that ARC plans to make. “The human capital entrenched
in CMB International represents some of the best minds in the market. We believe this will serve ARC and our investments well as we build our portfolio
to create wealth for stakeholders and continue to benefit the community,” says van der
Merwe. “The investment is born out of the trust we have built over the long relationships we have had with the leadership of Bravura, which now forms part of the CMB International group. We look forward to the ongoing success of this exceptional business.”
“This transaction marks a seminal moment in the evolution of CMB International,” says Taposeea. “It will provide a strong transaction pipeline and access to capital to grow the business through acquisitions as we further diversify into non-bank financial services, for example alternative investment management, and trading and brokerage services. This growth will be complementary to our core corporate finance, structured solutions and property investment and advisory services. We are excited that ARC has recognised both our skills base and our growth potential.”