DURBAN - Anchor Group, the alternative exchange (AltX) listed financial services holding company, announced the disposal of its 51% controlling interest in its subsidiary, Anchor Stockbrokers, to a consortium led by property entrepreneur Dr Sisa Ngebulana, for an undisclosed amount.
However, the transaction is still subject to regulatory approvals and is effective from June 1. The Anchor Group said upon completion of the conditions, Anchor Stockbrokers would become a Level II broad-based black economic empowerment contributor.
Anchor Group chief executive and founder Peter Armitage said it was excited about the new partnership, which formed part of its ongoing initiatives to transform their business. The agreement between the companies will see Ngebulana becoming the non-executive chairperson of Anchor Stockbrokers.
Ngebulana has 25 years of experience in the property sector and is the founder of Rebosis, the first black-owned real estate investment trust to list on the main board of the JSE.
He said given regulatory changes, corporate governance demands and intensifying competition, it was increasingly important that research houses remained autonomous and flexible to provide clients with objective insights and analysis. “The transaction will enable a boutique house such as Anchor Stockbrokers to leverage its track record and independent thinking, especially within real estate and related sectors,” Ngebulana said.
The group said the transaction would enhance research and insights solutions to clients across the spectrum, but with a strong property focus.
Important part
Brett Adams, chief executive of Anchor Stockbrokers, said this transaction formed an important part of their strategy to provide a wider range of institutional investors with access to an independent majority black-owned equities research and brokerage firm differentiated by its unique approach and focus.
Meanwhile Anchor Group yesterday also reported that it has become the ninth firm to have a secondary listing on the A2X Markets. It said it would retain its primary listing on the AltX and its issued share capital would not be affected by its secondary listing on A2X.
Armitage said a secondary listing on A2X gave brokers more options and supports free market principles. “There is no risk or cost to Anchor and it makes economic sense for us to back people who are bringing down overall costs.” Some of the companies that have joined A2X include Ascendis Health, Afrimat, Huge Group, African Rainbow Capital, Sanlam and Peregrine Holdings.
A2X chief executive Kevin Brady said: “As a well known player in the financial markets, Anchor can directly see the benefits that competition in the secondary market brings in providing choice, reducing friction costs and progressing markets.”