Risk management and insurance group, Aon South Africa, has signed a Memorandum of Understanding (MOU) with the Vurhonga Consortium to do Black Economic Empowerment (BEE) deal.
Under the terms of the MOU, the consortium made of the Tamela Consortium and Precious Prospects will acquire a 25.1 percent shareholding in Aon’s South African business. The transaction is expected to be concluded by the end of October 2011.
During 2012, a portion of the shareholding held by Vurhonga Consortium, representing three percent of the common equity in Aon, will be allocated to an employee share ownership scheme including historically disadvantaged Aon employees, further enhancing the far-reaching nature of the transaction.
Anton Roux, CEO and chairman of Aon South Africa, said the deal is an exceptionally positive move towards true broad-based empowerment, particularly with the strong female ownership within the consortium. “We are delighted to be joining hands with two partners who are very competent in the corporate business and public sectors and which have such a diverse group of women involved,” says Roux.
Dr Namane Magau, chairman of Precious Prospects Group, will resign from her position on the Santam board before joining the board of Aon South Africa. Vusi Mahlangu, chairman of the Vurhonga Consortium, and Makole Maponya will serve as its representatives on the board of Aon South Africa.
Aon South Africa has engaged in a strong growth strategy in recent years, highlighted by the acquisitions of QED Actuaries & Consultants, Shield Financial Services, Heritage Insurance Brokers, Pennant and Pinion Insurance Brokers and more recently, Glenrand M·I·B.
“Our acquisitions have provided Aon and our clients with a more balanced book of business across corporate, commercial and personal lines. We will continue to target strong growth in the public and corporate sector, areas where we believe the Vurhonga consortium can bring their expertise to bear,” says Roux.
Vusi Mahlangu added, “We are delighted to partner with such a reputable international company like Aon in South Africa to pursue new growth areas after a period of acquisitive growth in the country. Vurhonga comprise a team of remarkable professionals, including women professionals in the financial services sector. We look forward to a successful long-term relationship.”
“Our commitment to growing Aon on behalf of clients and colleagues remains steadfast and we have appointed Gestalt to assist us with this process to ensure that all parties benefit from the partnership transaction. Transformation plays a pivotal part of our growth strategy in South Africa, and we are pleased to be engaging with partners who share the same values in terms of business development, community consciousness and social investment,” concludes Roux.