Investec to take control of UK company
INVESTEC has reached agreement with management of UK-based Guinness Flight Hambro Asset Management (GFH) for it to take 100% control of the company.
This ends uncertainty over whether GFH management would be able to put a spoke in the wheel of Investec's £428-million offer which it made last week for British investment bank Hambros plc.
Investec already had a 44% stake in GFH following its £95-million acquisition of Guinness Mahon Holdings which it announced in April.
The Hambros deal would have given it 88%, but management, which had 11.5%, said last week they would "continue to seek an alternative buyer".
Investec announced on Friday that management shareholders of GFH had agreed to sell their shares to Investec for an undisclosed sum.
GFH will merge with Investec Asset Management to create an enlarged asset manage-ment group with third party assets under management of R103-billion, making Investec the largest SA private sector manager of third party assets. GFH would change its name to Guinness Flight Investec.
Investec CEO Stephen Koseff said GFH management "have been exploring a range of alternatives to resolve the issue of ownership uncertainty", but that Investec had been able to persuade them of the benefits of Investec ownership.
The merger would be a step in fulfilling Investec Asset management's mission "of being a domestically routed asset management operation with global capacity".