MMI Holdings, a South African financial services group, has signed an agreement with Imara Capital South Africa Proprietary and Imara Asset Management South Africa Proprietary to buy 100% shares of Imara S.P. Reid Proprietary (ISPR) for ZAR120m ($10.4m) in cash.

As part of the deal, ISPR will allow MMI to further expand its private client wealth management offering as well as ensure that Momentum Wealth, a unit of MMI, could provide its clients with private investments value proposition, including stockbroking and share portfolio management.

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The acquisition will provide MMI the ability to service the needs of retail and corporate client bases and also reduce external brokerage flow generated by asset management.

Additionally, the deal will see Imara SP Reid becoming a part of the products and investments business within the newly structured MMI client-centric model and will retain its current management team and structures.

Mark Tunmer, CEO of Imara Group, said: "The purchase consideration to be received from MMI represents a premium to the current net asset value of ISPR. The board therefore believes a disposal under these terms is in the best interests of Imara

"The envisaged transaction bestows benefits on all parties. It permits MMI to take an established position in South Africa’s retail stockbroking market, creates potential for ISPR to further strengthen its position in this sector and enables Imara to pursue further growth in our focus areas," Tunmer added.

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The transaction is subject to regulatory and Imara shareholder approval.

Founded in 1938, Imara SP Reid provides broking services for individuals and institutions in local, African and the international markets.