Shanduka investors reassess Pembani offer

THE REMAINING shareholders of Shanduka, following the exit of Cyril Ramaphosa, intended to accept an offer by the Pembani Group to combine their interests, which would create a new black-controlled natural resources and industrial group with a portfolio in excess of R11 billion, they said yesterday.

This was within two hours following the remaining Shanduka shareholders saying a proposed transaction announced earlier this year that would have seen a merger of the assets of Shanduka and Pembani was not successful, but discussions were ongoing.

Shanduka’s new shareholding comprises the Mabindu Trust (49.5 percent), a nonprofit entity set up in 2002 and financed by Shanduka to promote enterprise development; the China Investment Corporation (33.6 percent); and Standard Bank (16.9 percent).

Phuthuma Nhleko, a former MTN chief executive and now its chairman, is the executive chairman of Pembani.

The company has investments in energy markets, while Shanduka has interests in natural resources.

The remaining Shanduka shareholders said some of the assets in the new group would include interests in Engen, Afrisam and Shanduka Resources. The group will further have an interest in assets such as Standard Bank, Liberty and Pan African Resources.

“The group will have a portfolio value in excess of R11bn, which will give it significant scale, with liquidity to pursue value creating opportunities in sub-Saharan Africa. The group will be led by a strong executive team and board, chaired by Phuthuma Nhleko, co-founder and chairman of Pembani.”

The statement said the transaction remained subject to definitive agreements, the fulfilment of regulatory approvals, Shanduka and Pembani board approvals and the consent of the various investee companies.