/ 7 July 2005

i capital concludes broad-based BEE deal

i capital, a leading independent investment and advisory company, announced on Thursday it had concluded a broad-based empowerment (BEE) transaction with Sceptre Holdings and the Disability Empowerment Concerns Trust (DEC). The transaction results in these two BEE shareholders acquiring a 25,01% shareholding in i capital.

Lance Williams, i capital managing director, said the company was delighted to conclude a meaningful black empowerment transaction with partners who will enhance the business.

”i capital will benefit from the input from its BEE shareholders as well as have access to a much broader range of business prospects. The transaction results in i capital being an independent, black empowered company and strongly positions the company to enhance existing operations and seek new opportunities.”

Recent transactions in which i capital has been involved include their advisory work for Edcon around its acquisition of Topic(s); the formation of black empowered Unity Insurance and the Medscheme empowerment transaction. Williams said partner DEC was established in 1996 by seven major South African national non-governmental organisations representing the disabled and seeks to promote the economic empowerment of people with disabilities.

The DEC’s investment in i capital is held through its wholly-owned investment company.

Sceptre Holdings is a 100% black-owned and managed South African investment company headed by Wanda Shuenyane, a business professional with proven operations management and strategy consulting experience.

Sceptre’s core focus is to target investments that present a meaningful opportunity to actively leverage its commercial skills and experience.

”We believe we have undertaken a transaction with a BEE company of the future,” commented Williams with reference to Shuenyane and Sceptre.

”Sceptre and DEC’s extensive networks and business acumen, together with i capital’s proven track record in its chosen niches, creates a dynamic black empowered entity that is well positioned to compete successfully,” said Shuenyane.

Post the transaction i capital will be 25,01% black owned, with the majority of the remainder of the shares being held by its founders and directors, Lance Williams, David Smollan, and Rowan Williams. A further 5% is held by outside investors.

i capital will expand its current operations in corporate finance advisory, and private equity fund management and will also seek new and additional opportunities. One such opportunity is the recently acquired 51% interest in short term insurance brokerage AIB, a strategic area in which i capital will seek to expand. – I-Net Bridge