Mercer Africa Ltd. reached an agreement to acquire a 34% stake in Johannesburg-based financial services group Alexander Forbes Group Holdings Ltd. in a deal that will expand Mercer's exposure to growth prospects in South Africa and sub-Saharan Africa and make it a shareholder in Alexander Forbes' future listing on the Johannesburg Stock Exchange, said a news release from Alexander Forbes.
Alexander Forbes, which has more than 238 billion South Africa rand ($22.5 billion) in assets under management and administration, announced Monday its intent to list on the Johannesburg Stock Exchange, subject to JSE's approval.
The firm provides consulting, actuarial, asset management and administration services for corporate retirement funds and employee benefit schemes, according to a statement on its website.
The deal with Mercer is contingent on Alexander Forbes' listing on July 28, and is subject to regulatory approval, said Charles Salmans, spokesman for Mercer.
Mr. Salmans said terms of the deal are not being disclosed at this time.
“Through this investment, we will be able to support our global clients seeking to enter and expand into the African market, and with our global reach and capabilities, we will be able to support Alexander Forbes' clients seeking to grow outside of Africa,” said Julio A. Portalatin, president and CEO of Mercer, in a Mercer news release.
Bank of America Merrill Lynch advised Mercer on the deal.
Efforts to reach Lynn Stevens, spokeswoman at Alexander Forbes, were unsuccessful.
