| Notes |
history
FirstRand was created in April 1998 through the merger of the financial service interests of Anglo American Corporation of South Africa Limited (AAC) and RMB Holdings Limited (RMBH). The major companies involved at the time were the listed entities, First National Bank Holdings of Southern Africa Limited (FNBH) and the Southern Life Association Limited (Southern Life), which were controlled by AAC and Momentum Life Assurers Limited (Momentum), the holding company of Discovery Health Limited and Rand Merchant Bank Limited which was controlled by RMBH.
Momentum was used as the vehicle to effect the merger. In terms of the scheme of arrangement, Southern Life and FNBH shareholders received 675 Momentum shares in exchange for every 100 shares held. In addition, Momentum raised R5,1 billion by way of a rights issue in terms of which 572,7 million shares were issued at a price of 900 cents per share. The purpose of the rights issue was to facilitate the elimination of cross-holdings which existed between Southern Life and FNBH.
Momentum changed its name to FirstRand Limited and was listed on the Johannesburg Stock Exchange on 25 May 1998. A day later a similar listing occurred on the Namibia Stock Exchange.
The vision was to create a new group of companies structured with critical mass to take advantage of the convergence of banking and insurance products and services without the limitations imposed by minorities in operating companies.
Following pressure from shareholders to concentrate their efforts on mining and resources related activities, AAC and its associate De Beers undertook to sell their shares when prices were appropriate. De Beers sold their shares in the open market, while AAC reduced their holding in FirstRand from 20,4% to 5,25% following a deal with Remgro Limited. Remgro exchanged a portion of their newly acquired FirstRand shares for shares in RMB Holdings. This exchange allowed RMB Holdings to increase its holding in FirstRand from 25% to 32,83%. Remgro retained a 9,32% interest in FirstRand.
AAC disposed of the remainder of its shares over a period of time with the last of its shares being sold in December 2003.
FirstRand BEE transaction
In February 2005 the Group sold an effective 10% interest in FirstRand to four broad-based empowerment groups, Kagiso Trust, Mineworkers Investment Trust (“MIT”), WDB trust and the FirstRand Empowerment Foundation (a newly created FirstRand BEE entity, with a mandate for broad-based transformation, and black South African FirstRand staff and non-executive directors.
The Group selected its BEE partners because they share FirstRand’s objectives of enhancing broad-based BEE by addressing the needs of a wide constituency. In addition, the BEE partners have excellent reputations, successful track records and long standing relations with FirstRand and
[ Retrieved on 12 MAR 2008 ] |