Listed South African banking group Investec
has agreed to take full control of private client investment
management and stockbroking subsidiary Rensburg Sheppards.
Investec previously had a 47% interest in
Rensburg Sheppards, which will become part of Investec’s private
client activities division.
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Investec’s assets under management rose 50% to
£43.4bn ($66.7bn) in 2009, while net fund inflows exceeded
£4.5bn. Rensburg Sheppards had funds under management of
£12.3bn at 31 December 2009.
Investec said earlier this month that its
British, European and Australian businesses were expected to post a
rise in full-year operating profits, while profit at its South
African unit was expected to fall as defaults continued to
rise.
Schroders Investment Management and BlackRock
Investment Management, which held stakes of almost 8% and 3 per
cent respectively, have agreed to the deal.
Investec said its current plans for Rensburg
Sheppards did not involve any material change in its executive
management team, operating structure or commercial offering.
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By GlobalDataCommenting on the offer, Investec chief
executive Stephen Koseff said Rensburg Sheppards had been a good
investment for Investec over the past few years and the proposal
was the natural next step for both businesses.
Investec managing director Bernard Kantor said
the transaction was consistent with its strategy of growing its
asset management and private client platforms.
