Financial services and insurance group Aon has unveiled a black economic empowerment (BEE) deal that will see the Vurhonga Consortium acquire a 25.1% shareholding in Aon’s South African business for an undisclosed sum.
The consortium consists of BEE investment company Tamela Holdings and Precious Prospects, a women’s empowerment group.
Aon South Africa chairman and CEO Anton Roux said the deal was an exceptionally positive move towards true broad-based empowerment, particularly with the strong female ownership within the consortium.
“We are delighted to be joining hands with two partners who are very competent in the corporate business and public sectors and which have such a diverse group of women involved,” Roux said in a statement this week.
Employee share ownership scheme
During 2012, a portion of the shareholding held by Vurhonga Consortium, representing three percent of the common equity in Aon, will be allocated to an employee share ownership scheme including historically disadvantaged Aon employees, further enhancing the far-reaching nature of the transaction.
Precious Prospects chairperson Namane Magau will resign from her position on the Santam board before joining the board of Aon South Africa, while Vurhonga Consortium chairman Vusi Mahlangu and Makole Maponya will serve as the empowerment grouping’s representatives on the board of Aon South Africa.
“We are delighted to partner with such a reputable international company like Aon in South Africa to pursue new growth areas after a period of acquisitive growth in the country,” said Mahlangu. “Vurhonga comprise a team of remarkable professionals, including women professionals in the financial services sector.
“We look forward to a successful long-term relationship.”
South African growth strategy
Aon South Africa has engaged in a strong growth strategy in recent years, highlighted by the acquisitions of QED Actuaries & Consultants, Shield Financial Services, Heritage Insurance Brokers, Pennant and Pinion Insurance Brokers and, more recently, Glenrand MIB.
“Transformation plays a pivotal part of our growth strategy in South Africa, and we are pleased to be engaging with partners who share the same values in terms of business development, community consciousness and social investment,” said Roux.
The transaction is expected to be concluded by the end of October 2011.