CA approves Fleming takeover
Brian Benza | Tuesday April 11, 2017 16:32
Impaired by the loss of a P4 billion mandate with Botswana Public Officers Pension Fund (BPOPF) in July last year, Fleming has been knocked down from being one of the oldest and largest asset management companies in the country, losing other key clients and staff in the past eight months.
In a statement released this week, the CA said it had unconditionally approved the proposed acquisition as an analysis of the facts of the merger showed that the deal is not likely to result in the prevention or substantial lessening of competition in the market. “The market structure in the provision of institutional fund management and occasional wealth management of high net worth individuals will not be altered and as such does not raise any competition concerns,” said the competition watchdog.
Mmegi Business has gathered that CMA has tabled a P20 million offer with a view of rebuilding Fleming to eventually offer asset management services to its other subsidiary, Bona Life.
According to a filing with the CA, Fleming is equally owned by 21st Century Holdings through Robert Fleming Botswana Holdings (RFH) and Starfish Private Limited.
21st Century Holdings is owned by some of the biggest businessmen in Botswana who include Charles Tibone, Lawrence Lekalake, Samuel Mpuchani and Maclean Letshwiti.
Starfish, on the other hand is owned by Time Projects and PrimeTime director, Alexander Kelly and former chief executive officer of Fleming, Peter Van-Riet among others.
Among some of the businesses that 21st Century owns include Lesedi Motors, Smart Partnership (property development) and Bank Gaborone through Capricorn Holdings.
Since BPOPF’s termination of the P4 billion worth of mandates in July last year, Fleming has reportedly lost mandates from four other pension funds.
In the past eight months, the company is reported to have also lost key personnel with competitors such as Bifm, African Alliance and Afena Capital recruiting all of Fleming’s portfolio managers. Fleming’s chief investment officer also left the company recently.
“In its current state, it will be difficult for Fleming to compete in the market. We understand CMA is taking a medium to long-term investment position with a target of rebuilding the company and use it as an asset manager for Bona Life which is the same structure at BIHL with Bifm managing Botswana Life’s assets,” another industry source told Mmegi Business.
CMA is an investment company wholly owned by South African Timothy Marsland. Its largest subsidiary, Capital Management Botswana (CMB) has been a beneficiary of the BPOPF tenders with the company managing over P800 million in private equity for the pension fund.