Legae Securities announced a plan to acquire a 65% stake in Peregrine Securities on Wednesday, in a deal that will form a large black-owned and black-managed independent securities firm.
Legae formed a consortium, including an empowerment group and Peregrine management, which already has approval from Peregrine's holding company board.
The non-executive chairperson of Legae, Fatima Vadwa, took to Twitter to share news of the planned acquisition and the new company, to be called Legae Peresec.
"This is a significant transaction for the local financial services industry," says the anointed deputy CEO of Legae Peresec, Tshepo Maseko.
Formed in 1996, Legae was South Africa's first black-owned stockbroking firm. It has over 3,000 clients and R27 billion assets under administration.
Legae, an empowerment consortium, and Peregrine Securities management, are due to pay the listed Peregrine SA Holdings R910 million under a proposal that would see the transaction finalised in October 2018.
The Peregrine board said it had decided to accept the offer.
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