Vunani, the JSE listed financial services group, led by Ethan Dube into painting a phenomenal empowerment story is readying itself to rock the southern African region starting with an acquisition in Zimbabwe.
Vunani announced yesterday that it is acquiring a significant minority shareholding in Purpose Asset Management, a Harare based entity, for an undisclosed amount, to be settled in cash.
Under the leadership of a statistician, Dube, Vunani emerged as one of the early empowerment stories and has stayed the course while many others have lost steam particularly in the financial services sector. After going through measured growth since listing on the JSE AltX in 2007, Vunani seems to have settled and upped the gear over the past few years. It acquired Kagiso Securities about two years ago and its revenue has almost doubled.
Commenting on the Purpose deal Dube said “Even taking into account the political risk, Zimbabwe remains a good investment opportunity which will provide a platform for our expansion further into Southern Africa”.
“We are very excited about the opportunities this acquisition represents. Vunani has been providing advisory services in Zimbabwe for some time, but now we are able to emulate the full gambit of our diversified financial services business in this country”.
Purpose provides asset management services to both institutional clients and high net worth individuals.
Vunani will have the option to purchase a further stake in order to achieve a shareholding of 55% of Purpose Asset Management, subject to regulatory approvals. Purpose Asset Management will change its name to Purpose Vunani Asset Management upon completion of the transaction.
“We are confident that the investment in Purpose Asset Management will be value adding and provide great exposure to Zimbabwe’s developing market which has shown increased growth potential in past the couple of years,” said Dube.