FNB’s Wealth customers to benefit from BJM acquisition

First National Bank’s (FNB’s) listed parent FirstRand Limited, today announced that it has made an offer for 100% of Barnard Jacobs Mellet Holdings Limited (BJM) issued ordinary share capital at a price of R4.50 per share. The largest operation acquired in this transaction, BJM’s highly regarded stock-broking business will be integrated into FNB’s Wealth Segment.

“The transaction can fundamentally be described as mutually beneficial,” says CEO of FNB, Michael Jordaan.

“FNB will incorporate the businesses and skills of BJM into its Wealth Segment. This will offer a enriched range of services to our customers in this segment. The acquisition allows FNB to offer its customers a holistic wealth product offering,” says Jordaan.

“At the same time, we will not override the current businesses in BJM and will maintain their operating processes. Thus, I do not foresee that the existing 11 000 customers of BJM will experience any noticeable changes. BJM is a strong brand and a rated institution in South Africa, therefore the brand will remain unchanged,” adds Jordaan.

FNB already has a successful online share trading offering to its lower, middle and upper income segments via FNB Share Investing. The acquisition will enable bond and equity trades for the bank’s wealthier customers and will result in access to the wealth of experience embedded in BJM.

FNB’s substantially larger client base in this segment will also see that existing BJM customers will benefit from the greater economies of scale and wider delivery platforms across FNB’s business units.

“FNB’s 45 000 clients in its Wealth Segment are defined as clients with an income in excess of R1.1m p/a. This is closely aligned with the client base of BJM and we expect that the additional expertise of the BJM team will easily adapt to the larger client base in FNB Wealth. At the same time our clients should immediately notice the added depth in talent and delivery arising from the transaction,” concludes Jordaan.

“Since its inception 25 years ago, BJM has built a brand grounded on its core value of uncompromising integrity. This has cultivated a distinctive client experience which has earned us success and recognition as a top financial institution,” says Andile Mazwai, CEO Barnard Jacobs Mellet

The rationale of the transaction is to replace BJM’s existing public shareholder base with FNB as a single strategic partner that can extend the longevity of the BJM success story.

“This will be done by deepening our product range, reducing costs through economies of scale and extending our geographical presence. At all times staying true to our core value system,” continues Mazwai.

“We are excited by the prospects that this partnership brings for both our clients and staff. Our cultures of entrepreneurship and performance recognition reflect shared values and a natural fit. I believe that this new partnership will make for a famous success,” concludes Mazwai

PricewaterhouseCoopers (Proprietary) Limited (PwC) has been appointed by the board of directors of BJM as the independent advisor and has considered the terms and conditions of the Offer and whether such terms and conditions are fair to BJM shareholders. PWC have confirmed that the terms of the Offer are fair to BJM shareholders.