The black economic empowerment (BEE) deal announced by financial services group Old Mutual on Tuesday positions Izingwe and Chestnut Hill as significant players in the BEE space.
Sipho Pityana and former Scorpions boss Bulelani Ngcuka are the lead players of Mtha-we-Mpumelelo (Mtha), which was specifically created for the Old Mutual group transaction that introduces broad-based black ownership to its South African businesses — namely Old Mutual South Africa, Nedcor and Mutual & Federal.
Mtha’s shareholders are Izingwe Financial Investments, an associate company of Izingwe Capital; Chestnut Hill, which includes various individuals led by Ngcuka; and three broad-based groupings representing black medical and legal professionals.
Pityana, the chairperson of Izingwe, said: “With the experience and expertise within the Mtha consortium, we believe we can, and indeed are committed to, adding real value to the Old Mutual group. Furthermore, this partnership will create a platform for us to become meaningful players in the BEE environment.”
The deal consolidates Izingwe’s presence in the financial services sector. It already has a 20% equity stake in Riscura Solutions, an independent consultant to pension funds, employee benefit schemes and asset managers with funds in excess of R400-billion.
Ngcuka said: “We view our inclusion as a deliberate effort on the part of the country’s leading financial services institution to support new BEE players. It is also a recognition of the unique contribution that Mtha’s shareholders can make to the Old Mutual group.”
This is enhanced by the broad-based groupings that are included in Mtha. These are the National Association of Democratic Lawyers, the Black Lawyers’ Association and the South African Medical and Dental Association.
Collectively, they represent more than 7 000 black professionals.
Pityana and Ngcuka have demonstrated in their previous positions that they have the ability to play dynamic roles in driving change and development in large organisations. In addition to his roles as the director general of the departments of labour and foreign affairs, Pityana spent two years as an executive director of Nedcor Investment Bank.
As the national director of the National Prosecuting Authority, Ngcuka demonstrated his strong leadership abilities.
In addition to the broad-based groupings, Mtha includes individuals who have complementary skills and who have played key roles in the public and private sectors. It is a group of individuals that can significantly enhance the various businesses within Old Mutual’s South African businesses. — I-Net Bridge