Rencap buys Bernard Jacobs Mellet for R207m

Renaissance Securities Holdings, a unit of Russian private investment bank Renaissance Capital (RenCap), has agreed to buy South Africa’s Barnard Jacobs Melllet Securities for R207-million.

Stock broking firm BJM, which owns Barnard Jacobs Mellet Securities, said on Monday it had entered into an agreement with Renaissance to sell Barnard Jacobs Mellet Securities to unlock value for shareholders, sending its shares lower.

Shares in BJM dropped 21,05% to R3 by 7.13am GMT, lagging a 0,56% weaker JSE all-share index.

The broking firm said it was still deciding what to do with the proceeds from the sale.

In February, Rencap appointed a senior Merrill Lynch director to run its new offices in South Africa to focus primarily on metals and mining, oil and gas, financials and telecommunications firms.

Rencap said last month it would expand offices in Africa by 50 to 100% to as many as a dozen, adding further local expertise in a vast continent rich with minerals and oil.

Rencap was one of the most active dealmakers in Africa last year, executing 18 transactions in 10 countries. It has offices in Nigeria, Kenya, Zimbabwe, Zambia and Ghana.

BJM said on Monday the deal with Rencap was subject to approval by its shareholders, the Johannesburg bourse and the Reserve Bank. - Reuters


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