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PSG moves on BEE

10 February 2004 Staff reporter

PSG-owned life assurer Channel Life, is set to become one of only a handful of true black-empowered companies, with the news that long-standing Member of Parliament Desmond Lockey is to become the controlling shareholder of Channel Life, via a control str

"We identified Channel Life as an ideal candidate for black empowerment. It has an impressive track record in a large but mature industry. We expect renewed growth now that Channel has attracted appropriate BEE credentials," said Jannie Mouton, chairman of PSG.

According to Lockey: "I have decided to focus on furthering my career as a business person and entrepreneur. When Jannie Mouton presented me with the Channel Life opportunity, I latched onto it.

"The company has sound management and poses an unique opportunity in an industry that will find it difficult to transform, if only because of its size", says Lockey, who joins the Channel Life main board as non-executive director.

The Channel Life balance sheet gross assets grew by 34% to R739m for the financial year ending February 2003. Headline earnings grew from R14.1m to R20.2m, with Channel Life's interim financial results showing that the company is well positioned to ensure growth in headline earnings for 2004.

The transaction, facilitated by PSG and concluded at a fair value for Channel of R120m, is subject to the normal regulatory approval.

"We see this as a first step towards Channel Life becoming a truly South African life office. Further opportunities are being explored with Desmond," according to Leon de Wit, CEO of Channel Life.

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