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Russian investment bank expands in SA

4 May 2010

Russian-based emerging markets investment bank Renaissance Capital is to acquire the whole of BJM Securities, the brokerage business of South Africa's Barnard Jacobs Mellet group, for about R207-million.

Renaissance Capital announced its entry into South Africa in February this year and appointed Clifford Sacks, former South Africa co-CEO at Merrill Lynch, to lead its South African and pan-African equities businesses, and the acquisition will significantly increase the firm's presence in the country.

Founded in 1985, BJM Securities is the leading independent full service broker-dealer in South Africa, and is known for its outstanding research franchise, having been ranked first in South African research surveys.

"BJM Securities' high calibre team, market-leading research franchise and client-centric approach make it a perfect business and cultural fit for Renaissance Capital," Sacks said in a statement this week.

"When completed, the acquisition will mark a major step in building the first truly pan-African investment banking franchise stretching from the Cape to Cairo."

National resources transactions

Renaissance Capital is a leading investment bank focused on the emerging markets of Russia, Ukraine, Kazakhstan and sub-Saharan Africa. It provides the full range of investment banking products and services, including equity and debt sales and trading, corporate advisory, capital raising, research, structured solutions and derivatives.

It entered Africa in 2007, and today maintains offices in Nigeria, Kenya, Zambia and Ghana, and was one of the most active dealmakers on the continent last year, executing 18 transactions in 10 countries, and has carved out a particular niche in natural resources transactions in the oil, gas, mining and agricultural sectors.

Over the last 12 months it has raised US$5.8-billion in equity and debt capital for clients in those sectors globally.

In 2009, Renaissance Capital topped the league tables on London’s AIM market, acting on more equity capital markets and merger and acquisition transactions than any other investment bank.

"This transaction is a strategic quantum leap for BJM Securities, presenting it with a strong and enviable growth path into frontier markets," said BJM group CEO Andile Mazwai. "We believe that Renaissance represents a best-fit for BJM Securities for its unique geographic footprint, its winning culture and adventurous spirit."

The transaction is still subject to BJM regulatory and shareholder approvals, although Renaissance Capital has already obtained irrevocable undertakings from 68% of shareholders that they will vote in favour of the deal.

SAinfo reporter