The announcement of the acquisition of a minority stake in Futuregrowth by African Women’s Chartered Accountants Investment Holdings (AIH) marks an important milestone in a multi-year drive by Futuregrowth to regain its status as a majority black-owned company.
This is in step with Futuregrowth’s wide-ranging transformation initiatives, its mission to be a responsible and developmental investor, and its work to be a leader in the transformation of South Africa’s financial services industry.
Futuregrowth Asset Management (Pty) Ltd (Futuregrowth) and Old Mutual Investments Holdco are pleased to announce the signing of a Share Sale Agreement for the acquisition of 21.2% of Futuregrowth shares by African Women Chartered Accountants Investment Holdings (Pty) Ltd (AIH) (the Transaction), a wholly black women-owned investment company. The 21.2% stake is currently held by Old Mutual Investments Holdco.
The Transaction – which is subject to some conditions precedent being met – will see a special purpose vehicle owned by AIH and AIH Capital (Pty) Ltd purchasing the Futuregrowth shares from Old Mutual Investments Holdco.
“This Transaction, together with the existing shareholdings of Futuregrowth’s black staff, the Imfundo educational trust and Old Mutual Investments Holdco’s black shareholding, will move Futuregrowth significantly towards its long-stated goal of reattaining more than 50% black share ownership” says Paul Rackstraw, Managing Director of Futuregrowth.
Khaya Gobodo, Managing Director of Old Mutual Investments and Chairperson of Futuregrowth, adds: “As a responsible business, Old Mutual Investments is committed to the advancement of transformation in the asset management industry and in South Africa in general. We are incredibly proud to be in a position to support Futuregrowth in its strategic objective of attaining greater than 50% black ownership. This reflects our dedication to the broader transformation of the financial services industry and our commitment to environmental, social and governance (ESG) principles, particularly the empowerment of women.”
African Women Chartered Accountants (AWCA) is a non-profit organisation founded in 2002, whose mission is to facilitate the entry of black women into the chartered accountancy profession and accelerate their advancement to South African leadership positions. AIH was formed in 2008 to support the financial needs of AWCA by making long-term investments across various economic sectors. AIH is 100% black women-owned, and the majority of its 53 shareholders are chartered accountants and business leaders. Ten percent of AIH’s net profits are donated to AWCA to further its mission. The acquisition of a minority stake in Futuregrowth will be AIH’s largest investment to date.
“For some time, we have been looking for a shareholder and empowerment partner that shares our values and sense of purpose. We have found this in AIH, with its highly qualified and well-respected members who have a strong background in financial services,” said Rackstraw. “This is an exciting and fresh transaction in the asset management space. We look forward to AIH’s input on the Futuregrowth Board and its contribution as we continue our work to make a difference for South Africa”. Sindi Mabaso-Koyana, founder and Chairperson of AIH, adds: “We are truly honoured to be partnering with an asset manager that made its mark as a responsible investor many years before the recent emergence of the ESG movement. We look forward to continuously making a positive impact in our country as we together serve Futuregrowth’s clients and grow the business.”
Futuregrowth and Old Mutual are working on a number of initiatives to move Futuregrowth towards more than 50% black share ownership. The first material transaction to be signed is the acquisition of 21.2% of Futuregrowth shares by AIH. “Our aim is that Futuregrowth becomes a majority black-owned company over the short term, and this Transaction is an important step in that journey” says Rackstraw.
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