South Africa’s Absa Corporate and Business Bank (ACBB), a unit of retail lender Absa, has acquired a 10% stake in black-owned investment firm Sekunjalo, the companies said on Wednesday.
Sekunjalo said ACBB had a further option to acquire up to 9,99% of the group’s share capital within 180 days. Sekunjalo said it had issued 53,929-million shares from December 20 to May 21, raising R42,98-million.
”Our investment in Sekunjalo is not only in line with the Absa Group’s strategic intent to support black economic empowerment, but also a sound investment in a reputable group,” said Absa Corporate and Business Bank managing executive Robert Emslie.
Absa is majority owned by Britain’s Barclays.
Sekunjalo, which has a market capitalisation of R407-million, is among the leading black investment groups in South Africa.
Black economic empowerment is the government’s affirmative action programme aimed at giving black South Africans a bigger stake in the economy 13 years after the end of apartheid. – Reuters