Standard Chartered Bank acted as exclusive financial advisor to the China Investment Corporation (CIC) on the following milestone transaction:
Johannesburg, 22 December 2011
China Investment Corporation acquires a 25% shareholding in Shanduka Group.
Shanduka Group ("Shanduka"), a black owned and managed investment holding company, and China Investment Corporation ("CIC") are pleased to announce they have concluded a transaction which will result in CIC acquiring a 25% shareholding in Shanduka for R2billion. CIC will acquire its shares primarily from exiting shareholders, Old Mutual Private Equity and Investec.
The transaction is expected to further enhance Shanduka's growth trajectory over the next decade with the support of committed and long-term investors.
"We are extremely pleased with the investment by CIC into Shanduka. This partnership will allow us to jointly explore future investment opportunities in South Africa and other parts of Africa. We believe it will present broader opportunities for both organisations and be mutually beneficial", said Cyril Ramaphosa, Shanduka's Executive Chairman.
Shanduka's black owned and controlled status will not be affected by the transaction. Shanduka is determined to attract further foreign direct investment and promote domestic investment that will create employment.
Old Mutual Private Equity ("OMPE") as a selling shareholder has been a shareholder in Shanduka since 2006,. According to Jacci Myburgh, a Portfolio Manager at OMPE, the investment has been a very profitable one for the Old Mutual Private Equity Fund II and the disposal of its interest in Shanduka is part of its regular course of activities which include finite terms for its funds' investments. "Our investment in Shanduka has been a wonderful partnership for Old Mutual, and our association with Shanduka over the past six years has been very rewarding on a number of levels. We wish Shanduka all the best in its future endeavours."
Standard Bank acted as the exclusive financial advisor to Shanduka and Standard Chartered Bank acted as exclusive financial adviser to CIC on the transaction.
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