Lephatsi Financial Services acquires 35% stake bringing substantial skills and additional BEE credentials to the business
10 December 2012
- New shareholders will further contribute to Grant Thornton Capital (GTC) being a substantial contender in the financial advisory market
- Acquisition further enhances capability, gives clients access to a broader range of financial services
- Yet another strategic step in Grant Thornton Capital’s growth and expansion plans
Grant Thornton Capital (GTC), one of the country’s leading independent financial consulting businesses for more than 20 years, has announced that Lephatsi Financial Services has acquired a 35% stake in the group’s holding company, effective immediately.
Lephatsi Financial Services is a joint initiative between businessman Nic Frangos and Lephatsi Investments (Pty) Ltd. Lephatsi Investment was established by one of the country’s most successful entrepreneurs and “Black Like Me” founder, Herman Mashaba. The company focuses on investments in financial services organisations, such as GTC, where Lephatsi Financial Services brings hands-on experience and senior counsel to the business.
In March 2011, Lephatsi Financial Services acquired a 30% shareholding in the GIB Group, one of SA’s largest Independent Insurance Brokers in South Africa. The GIB Group is a shareholder in Assurex Global, a network of Insurance Brokers with partners located in 130 markets globally.
“We’re delighted to have Lephatsi Financial Services join our business,” says Gary Mockler, chief executive officer of Grant Thornton Capital. “Lephatsi Financial Services’ participation in our company will help take GTC to new levels with a highly professional offering, enhanced management skill set as well as improved BEE credentials to our company.”
Lephatsi Financial Services acquired its 35% stake from the Grant Thornton Johannesburg audit practice. The Securities Exchange Commission (SEC) in the USA and the Independent Regulatory Board for Auditors (IRBA) recently determined that audit firms may no longer have significant shareholdings in asset management businesses, in order to further ensure that no investment management decisions are compromised for clients. In light of this Grant Thornton Johannesburg was required to reduce its shareholding in Grant Thornton Capital to comply with these rules.
“While Grant Thornton’s shareholding has been reduced in line with governance and ethics requirements, we are pleased to continue our association with Grant Thornton Capital while simultaneously starting a new alliance with Lephatsi Financial Services,” says Deepak Nagar, national chairman of Grant Thornton South Africa. “This acquisition by Lephatsi Financial Services brings new shareholders of a laudable calibre to Grant Thornton Capital’s board and this will certainly strengthen the overall business offering for clients.”
Herman Mashaba stated “We are thrilled to join Gary Mockler and his successful financial advisory organisation. For Lephatsi Financial Services, GTC truly is a hidden gem with significant financial services expertise that spans a broad range of specialisations with which our business acumen is especially aligned.”
Gary Mockler will continue in his role as CEO of GTC while Farhadh Dildar, currently GTC’s COO joins the board as an executive director. Ms Thebi Moja has been appointed as chairman on the board, with immediate effect. Thebi has had previous experience at the National Gambling Board as well as serving on a number of audit committees. Herman Mashaba and Nic Frangos will assume non executive directorships on GTC’s board
“GTC will continue to build critical mass and we are well on track in terms of our growth objectives,” says Gary Mockler. “With the increased capability at board level as well as valuable new shareholders at GTC, the business now offers expanded services and enhanced expertise to the benefit of all clients.”
A press release Issued by Lianne Osterberger, Owner, Strat Comms
On behalf of: Grant Thornton Capital
Lianne Osterberger 083 272 7313 / email@example.com