A DEAL between PSG Investment Services (PSGIS) and Tradek has been finalised, which if approved by shareholders will create a private wealth management businesses and private client stock broker. In a transaction to take effect on April 1, Tradek will issue just over 431,1-million shares at a price of 14,5 cents to acquire 100% of PSGIS. This makes the total transaction worth R62,5-million, subject to performance clauses of Tradek and PSGIS. The restructured listed entity is expected to move to the financial services sector of the main board of the JSE and will be known as PSG Tradek. It will have an active client base of over 100 000 and total funds under administration of approximately R11-billion. Capital employed will be R90-million, with the current Tradek business accounting for 30%. Annual turnover is estimated at R140-million. There will be a R4-million rationalisation benefit of the merger which will take some time to realise. The PSG Group will hold approximately 66% of PSG Tradek with the remainder being held by minorities, including staff. – Sapa