i
capital concludes a broad based empowerment transaction
8 July 2005
i capital, a leading independent
investment and advisory company, announced today it had
concluded a broad based empowerment 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.
David
Smollan, i capital executive director said: “The
inclusion of a truly broad based BEE shareholder in the
deal was also important to the directors and founders
of the company and we believe we have more than fulfilled
that aim with the DEC as a shareholder in i capital”.
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 further.
i
capital acquires a 51% interest in Associated
Insurance Brokers
April 2005
i capital is
pleased to announce that it has entered into
a transaction with Associated Insurance Brokers
(“AIB”) to structure a new insurance
broking company in which i capital will hold
a 51% stake.
AIB’s
business will be absorbed by a new company
– i capital Risk Services (Pty) Ltd
- and will continue to operate with its existing
staff, from its current premises and on exactly
the same basis as in the past.
Neil
Graham, AIB managing director commented that
“This transaction will not result in any
change to the way we undertake business nor
to the level of service provided. As a result
there is no change in your existing insurance
arrangements, which will merely carry on uninterrupted.”
The
transaction will produce new and added potential
to AIB, as well as continuity and long-term
viability to the company. Very importantly,
by virtue of a 25.01% BEE shareholding in
i capital, AIB also gains a significant indirect
BEE shareholding.
i
capital directors Lance Williams and David
Smollan will both join the board of the new
entity, and Joel Bergman and Neil Graham will
continue to run the day to day operations
of AIB into the future.
