Media

Absa Capital backs Valli Moosa firm

Wed, 08 Nov 2006

Absa Capital and Lereko Investments, an empowerment investment holding company, announced on Wednesday that they had concluded an agreement whereby Absa Capital acquired an equity stake in Lereko Investments - led by Dr Popo Molefe, Valli Moosa and Dr Lulu Gwagwa. All partners held senior positions in the public sector before successfully pursuing careers in the business arena. They are joined by Monhla Hlahla, Murphy Morobe, Martha Molobi and Tsheko Ratsheko as Lereko's other shareholders.

The Lereko team holds diverse and complementary experience and skills to contribute to selected investment opportunities and Absa Capital's investment will strengthen Lereko's balance sheet and operational capacity. "This is not just another BEE deal but rather the establishment of a long-term strategic relationship. Lereko is committed to enabling effective transactions in South Africa with a focus on adding value to, and providing opportunities for broad-based participation in all its investments.

"Absa Capital, with its strong local and global capabilities, will play a significant role in assisting us to achieve our goals and enable us to accelerate our growth in a sustainable way," says Molefe, former premier of the North West Province and now CEO of Lereko Investments. Lereko Investments is black-owned, controlled and managed and has strong corporate governance credentials. Its principal investments with industry leaders to date include:

• Imperial Holdings - Lereko Mobility (49 percent owned by Imperial and 51 percent owned by a consortium led by Lereko) acquired a 7.25 percent stake in Imperial Holdings in April 2005.
• Sun International - where in a transaction valued at approximately R600-million, Lereko's consortium acquired Sun International shares from the Public Investment Corporation and from the company's treasury stock.
• Sappi - an empowerment consortium led by Lereko Investments, acquired a 25 percent interest in Sappi's SA plantation land portfolio for R224-million through a vendor-financed mechanism.
• Metier - the Lereko Metier Capital Growth Fund 51 percent held by Lereko and 49 percent by Metier) was established to capitalise on and develop investment opportunities in South Africa.
• Lereko also has a stake in Anglo Platinum's Waterfall platinum reserve.

Lereko and Absa Capital aim to be proactive participants in the advising, funding and structuring of BEE deals in those sectors where Lereko is active. "There are a number of strategic initiatives already in the pipeline which will provide a good cross flow of deals for both groups," concludes Vitalo.

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