Legae Peresec, South Africa‘s largest securities trading business, has been created, emerging from the combination of Peregrine Securities and Legae Securities, South Africa’s oldest black stockbroker.
Standard Bank‘s strategic guidance and innovative funding was central to the success of this dual purchase and merger transaction in South Africa’s highly competitive stock broking industry.
Standard Bank has funded Nkholi Consolidated Investments (Nkholi) ZAR 760m purchase of Peregrine Securities.
Legae Peresec is 51% black owned and managed with more than 30% black female ownership.
Shareholders are broad based and will predominantly be management and staff of the firm.
Jonas Malebye, Head, Investment Banking South Africa at Standard Bank, said when approached by Nkholi for a funding solution for this black economic empowerment transaction, “Standard Bank came up with an innovative funding structure, which enhanced the economics of the transaction for Nkholi.”
“The bespoke structure made it possible for Standard Bank to fund a substantial portion of the transaction on its own,” he said.
According to Tshepo Maseko, Chairman of Legae Peresec and responsible for the companys trading technologies, the new black-empowered and entirely independent firm will be large enough to compete with local and international banks, “using our excellent capital position to drive transformation and continued growth in the sector by providing our clients access to increased liquidity and capital, world class financial technologies and more robust risk management processes”.
Standard Bank will continue to partner with Legae Peresec, “as we grow our business and deepen transformation by supporting new entrants to South Africa‘s securities sector,” said Lester Bailey, who heads Legae Peresec’s Prime broking and custodial services offering.
Going forward, Standard Bank, as a banking partner to Legae Peresec, will continue to support the growth of the business. Standard Bank will also manage the new entities custody and clearing business.
“Growing tomorrow‘s corporate champions in a way that expands South Africa’s securities ecosystem through inclusive growth is critical to future-proofing our economy by locking in sustainable long-term growth that is relevant to all. Standard Bank is committed to the transformation of our economic landscape,” said Malebye.
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