The treasury division of Nedbank has obtained regulatory approval to spin-off three of its businesses into a consortium with substantive broad-based empowerment credentials.
The empowered consortium, known as Taquanta, has acquired a stake in Nedbank Treasury Asset Management, Nedcor Treasury Management Services and NiB Securities (now Taquanta Securities) for an undisclosed amount.
Dr Vincent Maphai, chairperson of Taquanta said: “I am proud to be at the helm of a truly broad-based empowered consortium. The transaction is founded on the ethos of true partnership and real community involvement, rather than being precipitated by the financial sector charter or the increasing trend towards empowerment initiatives.”
The empowerment consortium’s membership comprises Africa Milestone Investments, Disability Empowerment Concerns Investment Holding Company, SARHWU Investment Holdings and the WDB Investment Holdings.
The Taquanta consortium has a 30% stake in Nedbank Treasury Asset Management, now renamed Taquanta Asset Managers. Nedcor holds the remaining 70%.
Nedcor Treasury Management Services has been renamed Taquanta Treasury Solutions with the empowerment consortium holding 30% and Nedcor 70%.
Old Mutual, Nedcor’s controlling stakeholder, has a 20% shareholding in NiB Securities — now called Taquanta Securities — with the consortium holding 29% and Nedcor holding 51%.
The transactions will be funded by the Treasury Solutions and Asset Manager companies issuing preference shares to Nedbank as consideration for the purchase price. Old Mutual and Nedcor will provide the finance to the BEE consortium to enable them to purchase the 29% equity in the securities business.
Brian Kennedy, MD of Nedbank Capital, says: “Taquanta has been in the planning stages for a considerable period of time, long before the finalisation of the financial sector charter, and we are glad that it has finally come to fruition.
“Although we did not set out to specifically meet the requirements of the financial sector charter with this particular initiative, we believe that Taquanta, together with the many other empowerment deals that we have financed, demonstrate Nedbank’s commitment to the principles of the charter.
Ultimately we believe BEE is no longer a political imperative; it is also the right thing to do for the economy and it makes practical business sense.”
CEO of Taquanta, Neven Hendricks adds: “This deal ensures that our BEE partners are actively involved in benefiting their constituencies. For example, the WDB Investment Holding company provides financing to rural women for various self-help projects and the Disablity Empowerment Concerns Investment Holding company runs projects to benefit the handicapped.”
The three entities are also involved in activities in the SADC region and the United Kingdom. – I-Net Bridge