It was recently announced that JSE-listed Anchor Group (a wealth and asset management company) will be acquiring a 47.41% share in Capricorn Fund Managers (a leading global emerging markets hedge fund business). The price is set at R348.4 million cash, comprising R256 million in cash and the balance of R92 million through the issue of 7.7 million Anchor shares at R12 per share.
Rob Fihrer, Capricorn Fund Managers (CFM) CEO (pictured), said:
"It makes sense to have a highly respected fund management company as a partner, bringing with it vast amounts of complementary experience in the asset management sector."
For Anchor this represents an investment into a global high-performance hedge fund business and an exciting new investment range for its growing client base. In the short-term, the transaction should around R35 million to R50 million to Anchor's annual earnings.
The Anchor Group has a market capitalisation of over R2.3 billion as at 9 October 2015. Its share price has risen from R2 to over R14 in its first year of listing. CFM, which has R6-billion-plus of assets under management, was one of the pioneers of the South African hedge fund industry, and has been active in managing hedge funds since 2003.
The effective date of the acquisition is 1 February 2016 or alternatively the date on which the last condition precedent is fulfilled.
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