Pembani finalises large merger with Shanduka after receiving approval from Competition Tribunal

Johannesburg, South Africa – 19 August 2015 – Black-owned investment company Pembani today received approval, with conditions, from the Competition Tribunal for its large merger with Shanduka.

Pembani CEO Kennedy Bungane welcomed the decision as an important milestone towards unlocking the true potential of fully black-owned industrial businesses in South Africa and across the continent.

The merger, which will see Pembani’s portfolio of assets swell to more than R9 billion, was the final step in setting up the new industrial-focused investment company with major ambitions to drive the African growth story.

Pembani gets sole control of the Shanduka businesses and some of the larger assets in the group will include the interests in Engen, AfriSam and Shanduka Resources.

“The investigation by the Competition Commission was very thorough and we are extremely pleased the Tribunal has approved a merger that is so significant for our economy and country. Broader-based ownership is crucial to ensuring sustainable levels of growth are achieved and the group’s portfolio value now gives it significant scale and liquidity to pursue value creating opportunities in sub-Saharan Africa,” said Mr Bungane.

“We will continue to pursue investments in sub-Saharan Africa based on value and potential. We want to be majority shareholders wherever possible to be able to drive operational activities. We want to unlock the true potential of fully black-owned industrial businesses in South Africa and across the continent.”

Shanduka Group was founded in 2001 as a black-owned investment holding company. It is invested in a diverse portfolio of listed and unlisted companies, with key holdings in the resources, food and beverage industries. Shanduka is also invested in the financial services, energy, telecoms, property and industrial sectors. The group has investments in South Africa, Mozambique, Mauritius, Ghana and Nigeria.

The new group will also have an interest in assets such as Standard Bank and Liberty Group. As a result of his divestment from Shanduka, which was announced in November 2014, Deputy President Cyril Ramaphosa will not have any shareholding or any direct or indirect commercial interests in the group.

The Group will be led by a strong executive team and board, chaired by Mr Phuthuma Nhleko, co-founder and chairman of Pembani and by CEO Kennedy Bungane.