Investment management firm Allan Gray has sold off just under 19% of its shareholding in a black economic empowerment (BEE) deal, the company announced on Wednesday.
It also said the firm’s founder, Allan Gray, had donated R1,1-billion from the sale to support initiatives that include comprehensive funding for university students wanting to become entrepreneurs.
Allan Gray Limited is the largest privately owned investment management firm in Southern Africa.
The empowerment deal, with a trust named E2, brings black ownership of the unlisted Allan Gray Limited to an effective 20%.
E2’s chairperson is Thando Mhlambiso and his co-trustees are Imogen Mkhize and Mahesh Cooper. Mkhize and Mhlambiso sit on the Allan Gray board.
According to Wednesday’s statement, none of them have ”any beneficial interest” in E2.
”The overriding purpose of E2, as a long-term capital fund, is to foster excellence in entrepreneurship by providing subsidised financing to new business owners,” the statement said.
E2 purchased the Allan Gray shareholding with a loan from Standard Bank.
The company said that as a token of their appreciation for the contributions of everyone at Allan Gray, Gray and his wife Gill had undertaken to pay for the school and university education of children of all staff earning less than R250 000 a year. — Sapa