JSE TO ACQUIRE ALMOST 75 PERCENT OF LINK SA

JSE LIMITED, the operator of the Johannesburg Stock Exchange (JSE), is acquiring Link Market Services South Africa, the second largest share registry business in South Africa, for R224.5 million, as part of efforts to consolidate shareholder services for listed companies. JSE Limited would acquire a 74.85 percent shareholding in Link SA, with Link SA’s Black Economic Empowerment (BEE) shareholder retaining the remaining 25.15 percent, and the Link SA chief executive, Iqbal Haniff, remaining as the chief executive of the company. Link SA has six of the top 40 listed companies as clients.

The acquisition will see Link SA being merged into the JSE Limited structure and operated independently under a newly formed business stream. “This proposed acquisition comes after many engagements with the JSE’s listed companies’ which have expressed a desire to drive synergies and consolidate how they service their shareholders through a one-stop-shop,” the JSE said in a statement. The deal was expected to lift the JSE’s group revenue by 6 percent, while exceeding its return on investment hurdles. “This demonstrates that even in tougher economic times there are opportunities where the JSE can make a difference to its clients by thinking creatively and working hard to deliver that difference.” Through Link SA, the JSE intends to introduce end-to-end products and services to listed companies, making it easier for them to communicate and understand their shareholder base. | Edward West