The PSG Group announced on Wednesday that it has entered into a partnership with a new black empowerment company, Arch Equity, which will acquire for cash 10-million shares in the PSG Group as its first transaction.
Desmond Lockey, who recently became the controlling shareholder of PSG subsidiary and life assurer Channel Life, is the controlling shareholder of Arch Equity and will serve as CEO of the new company. Lockey’s investment interests, which include Channel Life, will be consolidated in Arch Equity. A number of the black consortium members will serve on the Arch Equity board, including the chairperson.
Lockey was also appointed to the PSG Group board.
Lockey said the establishment of Arch Equity is in line with the financial sector charter and at the same time ensures a significant black empowerment influence on the PSG Group. Arch Equity is a fully-fledged investment company and will focus on empowerment transactions, of which there are a number of opportunities.
“I believe Arch Equity will present an important contribution to black empowerment and my vision is to be a listed, black-owned company that focuses on doing BEE [black economic empowerment] and private equity transactions,” Lockey said.
PSG Group chairperson Jannie Mouton said PSG had to search hard for the right person with whom to launch its BEE initiatives.
“We’ve found such a person in Desmond Lockey,” he observed.
In essence, the establishment of Arch Equity means that an initial 10% of PSG Group will go towards BEE. PSG will at the same time enter a new growth phase after focusing on the unlocking of value up to now.
“The new initiatives with Arch Equity are in line with PSG’s business philosophy of being an investment holding company acting as incubator for new independent businesses. It is a win-win situation with PSG getting a partner in black empowerment and for Arch Equity to be in a position to make an important contribution to BEE in the financial sector,” Mouton added.
PSG Capital as well as the Mouton family have committed themselves to the provision of capital to Arch Equity and will have a significant minority interest in Arch Equity. Mouton will serve on the board of Arch Equity, while Piet Mouton was appointed as executive director to be of assistance to Lockey. — I-Net Bridge