Investment management firm Prudential Financial, in partnership with LeapFrog Investments, intends to acquire a strategic minority interest in Alexander Forbes Group.
The firms will acquire 200 800 000 Alexander Forbes shares, representing 14.8% of the issued share capital or 15.1% net of current treasury shares held by Mercer.
The acquisition of shares will be made through a subsidiary of Prudential Financial, New Veld, for a purchase consideration of R5.25 per share.
The transaction builds upon Prudential Financial’s partnership with LeapFrog Investments to access high-growth financial services markets in Africa and deliver essential financial tools to emerging consumers, according to a joint statement.
Since 2016, Prudential Financial and LeapFrog Investments have invested in firms across the African continent, including Enterprise Group in Ghana and ICEA LION in Kenya.
“We are excited to broaden our presence in Africa and enter South Africa with an investment in Alexander Forbes through our partnership with LeapFrog Investments,” said Pavan Dhamija, Prudential Financial’s regional president (Africa, India, Indonesia, and Business Development).
“This transaction underscores Prudential’s continued focus on Africa as a strategically important growth market and our vision to be a global leader in expanding access to investing, insurance, and retirement security. We identified Alexander Forbes as the market leader in South Africa best capable of advancing our vision and strategy.”
“The conviction of our long-term strategic shareholders, including ARC, can provide confidence to the market in the investment case for Alexander Forbes as we accelerate our transformation towards becoming the most impactful provider of financial advice to institutional clients and individual customers,” said Dawie de Villiers, CEO of Alexander Forbes.
The transaction is subject to regulatory approvals and other customary closing conditions.
Deutsche Bank acted as financial advisor, and Cliffe Dekker Hofmeyr Inc and ENSafrica in South Africa and Debevoise & Plimpton LLP acted as legal advisors to Prudential Financial and LeapFrog Investments on the transaction.
Standard Bank acted as financial advisor, and Bowmans acted as legal advisor to Alexander Forbes on the transaction.
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