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Maitland announces empowerment transaction

20 August 2007

Maitland Fund Services, previously FinSource, has announced that is has concluded a broad-based black economic empowerment (BEE) transaction with Cape Town-based Ditikeni Trust.

In terms of the transaction Ditikeni will acquire 10% of the issued share capital of FinSource Group Holdings (Pty) Limited, a Maitland company, subject to certain conditions.  Ditikeni will be entitled to board representation with immediate effect.  Funding for the transaction will be provided by Maitland Fund Services.

Managing director Dale Lippstreu says that Ditikeni was selected as a BEE partner because it has a genuinely broad-based stakeholder model which seeks to produce economic upliftment and empowerment to the poorest of the poor. "We accordingly regard the transaction as complementary to our broader group programme of social responsibility investment," he says.

Ditikeni Trust has investment interests in Caltex and Kelly Group, as well as a small indirect stake in Old Mutual, Nedbank and Mutual & Federal. It works closely with major empowerment companies such as Safika, Sphere, African Pioneer and the J&J Group.

Sahra Ryklief, chairperson of Ditikeni says that ditikeni is the Venda word for "something to lean on" or sustainability. "The financial benefits of our investments flow to 22 non-profit beneficiary organisations operating in some 200 mostly-rural communities around the country.

"We are rightly discerning about our investments. Maitland's fund services business is not only long-established but has strong growth potential. We look forward to our future partnership."

Lippstreu says since the acquisition of FinSource by Maitland in 2005 the business has grown rapidly and now administers R272 billion in assets on behalf of over 70 fund management businesses. 

"We are unique in offering both asset and liability administration services on a domestic and international basis through our network of offices across Europe, South Africa and the British Virgin Islands. Offshore business now accounts for nearly half of the client base." he says.

According to Lippstreu the growth of international business is likely to be sustained and presents a strong opportunity to develop a substantial fund servicing industry in South Africa.

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