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Absa Capital buys stake in Lereko Investments

Reuters

Wed, 08 Nov 2006

JOHANNESBURG, Nov 8 (Reuters) - Absa Capital, the investment banking arm of South Africa's biggest retail lender Absa <ASAJ.J>, has bought a stake in black-led investment firm Lereko Investments, the groups said on Tuesday. Lereko is led by former politicians Valli Moosa and Popo Molefe and among its investments are stakes in industrial group Imperial Holdings and the world's biggest maker of fine paper, Sappi. Absa Capital and Lereko said in a joint statement that the groups will aim to participate in the funding, advising and structuring of black economic empowerment (BEE) transactions. They did not give any financial details. "The Absa/Lereko partnership is in line with the strategic intent of the Absa Group to boost its empowerment credentials by forming partnerships with respected and credible players such as Lereko," Absa Capital Chief Executive Officer John Vitalo said. BEE is a massive affirmative-action programme aimed at bringing blacks into the mainstream economy, which is still dominated by whites more than 12 years after the end of apartheid. Absa is majority-owned by Britain's Barclays Plc.

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