Following the deal, RBS will have a level four black economic empowerment rating.
Nadeson Investments has acquired a 25.1% stake in Risk Benefit Solutions (RBS), an independent insurance and risk specialist, for an undisclosed sum, in a deal that will raise the broker’s empowerment rating.
Nadeson Investments is headed by Hassen Adams, chairman of Grand Parade Investments – the parent company of Burger King South Africa – which recently said it would exit bricks-and-mortar gambling and boost its portfolio in technology-based gaming.
RBS CEO Michael Peterson said on Tuesday Mr Adams was a “well-known businessman” who could help raise RBS’s profile.
Following the deal, which came into effect on 1 May, RBS will have a level four black economic empowerment rating. Hollard owns 34% and management holds the remaining share.
RBS has more than 5,000 corporate and commercial clients, 10,000 personal lines clients and annual premiums of about R300m.
Mr. Petersen said the transaction would help RBS achieve its aggressive five-year strategy for growth both through acquisitions and organically. ” We will definitely be looking at more acquisitions. With the changes in legislation and their impact on business, our viability in future will depend on critical mass,” he said.
Source: Business Day Live
Date: 18 June 2014