South Africa | Coronation more than doubles its stake in Alexander Forbes

17 minutes ago

Coronation has increased its interest in Alexander Forbes from 3% to 7%, the latter said on Monday. 

In a statement to shareholders, the company said the asset manager's "total interest in the ordinary shares of the company has increased from 3.44% to 7.24%", in what was described as a significant change in shareholding.

The announcement comes barely a month after Patrice Motsepe’s African Rainbow Capital announced plans to acquire a controlling stake in the insurance firm.

Last month, ARC and Alexander Forbes announced that the company, controlled by Motsepe’s Ubuntu-Botho, would be buying Mercer SA’s shares in what would see it become the strategic shareholder at Alexander Forbes. ARC said it would buy 193 million shares from Mercer Africa for around R1 billion.

Last month, Momentum Metropolitan said it had completed its acquisition of Alexander Forbes short-term insurance business, in a deal which was proposed at just over R1.9 billion for the entire issued share capital of AFI. 

* Compiled by Sibongile Khumalo