Herman Mashaba’s operation Lephatsi Financial Services has acquired a 35% stake in Grant Thornton Capital (GTC), a financial consulting businesses.
The deal was announced this week in what looks like a black economic empowerment (BEE) initiative sparked by new regulatory requirements.
Lephatsi Financial Services acquired its 35% stake from the Grant Thornton Johannesburg audit practice. The deal came after the Securities Exchange Commission (SEC) in the US 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.
Lephatsi Financial Services is a joint initiative between businessman Nic Frangos and Lephatsi Investments which was established by prominent businessmen Mashaba who is known for his “Black Like Me” venture.
“We’re delighted to have Lephatsi Financial Services join our business,” said 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.”
“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,” said 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.”
Mashaba said “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.”
The statement said 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. Thebi Moja has been appointed as chairman on the board, with immediate effect. Mashaba and 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.”