Alexander Forbes sells out of UK unit
Photo: Simphiwe Mbokazi Photo: Simphiwe Mbokazi
Johannesburg - JSE-listed financial services group Alexander Forbes will sell its 60 percent interest in UK-based consulting business, Lane Clark & Peacock, for R1.3 billion.
The sale, which also includes selling out of of LCP's subsidiaries in Ireland and the Netherlands, is to the LCP individual partners and funds managed by Inflexion Private Equity (Inflexion). It also includes £6.4 million of profit distribution which will be made in two tranches during the course of the 2017/18 financial year, Alexander Forbes says in a statement.
The company explains, although LCP is a cash-generative business with continued growth potential, it is no longer central to Alexander Forbes’ group strategy, which is to build a globally distinctive, pan-African financial services organisation.
CEO Andrew Darfoor notes: “On September 15, I announced we would accelerate the simplification of the group, with a focus on building a pan-African financial services leader. The sale of our stake in the LCP business marks further progress in our aggressive pursuit of the simplification of the group. The disposal for cash provides additional funding for the group to pursue acquisitions in line with its communicated strategy, and executing a focused share repurchase programme on receipt of shareholder approval. The company remains committed to a 1.5 times dividend cover policy."
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The five main pillars of the group’s strategy are to increase its institutional financial services and asset management competencies; grow its retail financial services capability; expand the business across sub-Saharan Africa; strive for excellence in service, operations and technology; and continually adapt to changing customer needs and expectations through disruptive innovations.
Darfoor says the group, which already has a strong presence in markets such as Botswana, Kenya, and Nigeria, continues to explore additional growth opportunities on the continent.
“We are pleased that we are making strong progress to accelerate the simplification of the group and we see good structural growth prospects and opportunities in our existing and new markets across Africa, notwithstanding the challenging macro environment.”