In March this year, we announced 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), a wholly black women-owned investment company (“the transaction”). We are happy to announce that all the conditions precedent for the transaction have now been met, with payment for the shares having taken place and the share transfer effected on 30 June 2022.
The transaction involves the purchase of Futuregrowth shares from Old Mutual Investments Holdco by a special purpose vehicle owned by AIH and AIH Capital (Pty) Ltd. Together with the existing shareholdings of Futuregrowth’s black staff, the Imfundo educational trust and Old Mutual Investments Holdco’s black shareholding, our effective black shareholding now stands at 49.6%. We are well on our way to achieving our goal of becoming a majority black-owned company before the end of 2022.
“Through this transaction, AIH has shown confidence and trust in Futuregrowth. We are excited about this next phase in Futuregrowth’s journey with AIH as our partner. Futuregrowth’s success can significantly contribute to helping AIH’s aspirations come true. It is fantastic that through this partnership we can directly contribute to increasing the pool of black woman chartered accountants in South Africa, which is so relevant for the transformation of the asset management industry” says Paul Rackstraw, Managing Director of Futuregrowth.
Sindi Mabaso-Koyana, founder and Chairperson of AIH, adds: “It is official, AIH are 21.2% shareholders of Futuregrowth, one of South Africa’s largest asset managers that does not only invest with a conscience, but applies this to everything they do. We are proud to have closed this transaction, meeting all conditions precedent two months ahead of our target date of 31 August. We are looking forward to a partnership of future growth.”
Sindi has joined the Futuregrowth Board with immediate effect.
This partnership is in step with Futuregrowth’s wide-ranging transformation initiatives (from moving to a more diverse staff complement to managing funds that have the most impact, amongst others); its mission to be a responsible and developmental investor; and its work to be a leader in transforming the environment in which we operate.
AIH was formed in 2008 to support the financial needs of African Women Chartered Accountants (AWCA) by making long-term investments across various economic sectors. AWCA is a non-profit organisation founded in 2002, whose purpose is to facilitate the entry of black women into the chartered accountancy profession and accelerate their advancement to South African leadership positions. 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 is AIH’s largest investment to date and has the ability to make a major positive contribution to AWCA’s mission.
Khaya Gobodo, Managing Director of Old Mutual Investments and Chairperson of Futuregrowth, adds: “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.”
We are also proud to announce that Futuregrowth was awarded BEE Level 1 status on 8 June 2022, prior to the empowerment transaction being concluded. This milestone was possible as a result of several companywide transformation initiatives over the past few years.