Absa Corporate and Business Bank announces investment in Sekunjalo

Absa Corporate and Business Bank (ACBB) has announced the acquisition of nearly 10% of the "B' shares in JSE listed top empowerment group Sekunjalo Investments Limited (SIL). 

The shares are issued at 82 cents per share and the cash resources will have an earnings enhancement on the group.

ACBB will act as a strategic partner to assist SIL with their funding requirements as they embark on their new strategy to invest in large scale broad based black economic empowerment opportunities in quality businesses.  

"Our investment in SIL is not only in line with the Absa Groups strategic intent to support black economic empowerment, but also a sound investment in a reputable group," says Robert Emslie, Managing Executive of Absa Corporate and Business Bank.

ACBB's decision to invest in SIL is based on the philosophy of providing a full package of financial services.  Says Emslie: "We do not want to make equity investments in isolation.  We hope to use this equity investment to complement the current services that ACBB is already providing to Sekunjalo." 

Says Dr Iqbal Surv, Chairman and CEO of Sekunjalo, "We see this as the basis of a long-term association between SIL and Absa.  The cash resources will be used to exponentially grow the higher margin businesses, expand the existing business units and fund new investment opportunities.   This is important in the context of our strategic relationship and positioning our group for the larger BEE transactions."

SIL is black owned, controlled and managed and has sound BEE credentials. Its principal investments include healthcare and pharmaceuticals, information technology, financial services, aquaculture and biotechnology, fishing, and enterprise development. 

SIL was recognised in 2006 as South Africa's top empowerment company by a Financial Mail and Empowerdex survey of the Top 200 listed companies.