Imara Sells-Off SA Stockbroking Subsidiary for $10mln
17 December 2014
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Pan-African asset manager Imara Holdings has reached an agreement to sell-off one of its Johannesburg subsidiaries, Imara S.P. Reid (ISPR) to MMI Strategic Investments for about $10,25 million (R120 million), the chief executive has said.
Mark Tunmer said ISPR, one of South Africa’s oldest stockbrokers established in 1938, had been an important contributor to the group but an increase in online share trading, escalating regulatory and compliance costs and generally changing market dynamics had necessitated the disposal.
“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,” Tunmer said in a statement released on Monday evening.
Details of the transaction will be published in a circular to shareholders next month, he said. Finalisation of the transaction was dependent on regulatory approval and was also subject to the approval of shareholders at an extraordinary general meeting next January.
Imara is an independent, Botswana-listed investment banking group with offices in Angola, Botswana, South Africa and the UK and associate offices in Malawi, Mauritius, Zambia and Zimbabwe.
It has also partnered with Chapel Hill Denham in Nigeria, Sterling Bank in Kenya, Namibia Equity Brokers and Mac Capital in Dubai.
Despite the sale of ISPR, Tunmer said Imara would retain a strong presence in the South Africa its asset management and corporate finance subsidiaries.