JOHANNESBURG - Africa's largest stock exchange JSE Limited said on Monday it had agreed to acquire 74.85 percent of share registry and financial services provider Link Market Services South Africa from its Australian parent company for R224.5 million.
Link SA is the second largest share register business in South Africa and has a client base that includes six of the top 40 issuers.
"The proposed transaction supports the JSE’s strategy to strengthen its relationships with its issuers and to grow sustainably across the issuer services value chain," the JSE said.The stock exchange said the deal would result in it holding 74.85 percent in Link SA with the latter's black economic empowerment (BEE) partner retaining an existing 25.15 percent.
Iqbal Haniff would remain CEO of Link SA and the company would retain its level 2 BEE rating post the transaction, the JSE added.
It said the consideration of R224.5 million for the Link SA stake would be paid from the group’s cash reserves.
"The proposed transaction is revenue accretive with an expected contribution of approximately six percent of group revenue, while exceeding the group’s return on investment hurdles," the JSE said.
The deal was expected to close by December 31, subject to required approvals being obtained, it added.
- African News Agency (ANA)