Investec Asset Management’s executive team has plans of boosting the shareholding in the business after paying around $280 billion for a stake of 15%, as confirmed by the Managing Director of the unit, Thabo Khojane. Khojane stated that they will have total stake of 20% by end of 2020 and they expect to get more stock after that. Thereby, Khojane has referred to an option for increasing the stake. Khojane stated that they will like to buy as much as possible, however, the shareholders will try to sell less. Hence, the entire thing will turn out to be a balancing act and 20% is the result of that only.
Incidentally, Investec Plc. is owner of a bank and a money manager in UK and South Africa. On 14th March, it announced that senior employees of the asset management unit will buy 15% stake for a price of 180 million Pounds. Staffs will have the right to boost that by around 5% more over the period of next 7 years. The head of the Investec Asset Management, Hendrik du Toit leads the buyers and the team comprises of a total of 40 employees and senior managers.
Investec has gained 16% in 2013 and each share is currently priced at 68.05 Rand is South Africa. Investec is the best performing bank stock in South Africa for the current year. According to Khojane, the Investec group is sort of parent whom one wants if he is an independently minded group. Khojane added that for this industry, there is a premium for leadership continuity and Investec is no exception.
In 3 years, the money manager with a total of $105 million in funds under the management can start to take up the next 5% as well. Individuals who have taken on debt for funding the deal should have money before time span of 10 years is up, as stated by Khojane.
According to the Banking Analyst of RMB Morgan Stanley, Greg Saffy, the asset manager will probably attract between 1.8 billion pounds and 3.5 billion pounds of net inflows on every year over the course of next 3 years. Saffy published his comment through a note released on 29th April for his clients. On the other hand, the operating profit will probably rise to 172 million Pounds by 2015 from its current value of 127 million.