The South African competition commission has cleared the merger of financial services groups Escher Group and mCubed Capital Holdings, with no conditions.
According to mCubed, the new company, Escher mCubed Capital Holdings will be South Africa’s largest independent multi-manager with combined assets under management of more than R30bn ($3.6bn). The new group company secretary, Johan Steyn said the merger also received clearance from the Financial Services Board (FSB), which approved the transfer of directors and licences to Escher mCubed Capital.
Existing mCubed Capital shareholders will hold 60% of the total 750m shares in the new group, while Escher shareholders will hold the balance. Management interests will own almost half the shares in issue.
The merged entity will develop and focus on new business opportunities in four areas, namely multi-manager asset management, retail investments, investment administration, and investment structuring.
MD and CEO of Escher mCubed Capital, John Storey said: By leveraging our combined skills and knowledge capital, we will be able to improve service to our clients and increase shareholder value.
Another significant advantage for our clients is our total independence from any consulting group or asset manager.
mCubed said the new group will also benefit from joint venture relationships with the likes of the Mineworkers' Investment Company, which will give it access to retirement funds in established sectors.
By Janet Du Chenne
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