By David McKay
The appointment of mining entrepreneur Tokyo Sexwale to the board of Absa, South Africa’s third-largest bank, is another step in the former politician’s climb up the South African business ladder.
It is further evidence of Absa’s resource-banking ambitions.
The bank is reputed to be heavily under-lent by between R6-billion and R13-billion, and is seeking new and diverse businesses in which to transact. Absa group chief executive Nallie Bosman says his bank is willing to assess any potential deal on condition it has commercial merit.
The financial services company has already provided finance for Impala Platinum’s acquisition of shares in Zimplats and its platinum operations, and has played a central role in enabling Harmony Gold to buy the Elandsrand and Deelkraal mines from AngloGold. It won’t baulk at other good mining deals and Sexwale is one way of vetting them.
Sexwale owns Mvelaphanda Holdings (Mvela), a mining and resources company with interests in two listed firms, Northam Platinum, and Trans Hex, an alluvial and marine diamond-mining company. Mvela is also launching a minerals company, as well as having a presence in energy and oil.
Clearly, Mvela has cast a wide net but, amazingly, it has not spent a penny to amass the R700-million value imputed to it. Good contacts, many of them political, have enabled Sexwale to gather his emerging empire about him.
It will come as no surprise that long-time Sexwale supporter Rembrandt Holdings has helped guide the introductions between Absa and Sexwale. Rembrandt, which owns 10% of Absa through it’s major shareholder, Universa, has also been instrumental in helping Sexwale gain business footholds.
”Tokyo received three requests for him to join major boards recently. But he only wants to join those companies in which he can have a material stake, or if they are strategic in his sector,” says an Mvelaphanda Holdings official.