BEE deal for Corinth Capital
2005-08-25
CORINTH CAPITAL, a Paarl based financial services operation, and Motse Capital, a Johannesburg based investment firm, recently announced a far-reaching black economic empowerment (BEE) deal in the financial services sector.
Corinth Capital is an independent treasury solutions company within the financial sector offering forex and investment services to its clients in mainly the wine and fruit export and import markets.
Motse Capital is an empowerment investment company focusing on the financial and technology sectors.
According to Khanya Motshabi, executive chairman of Motse Capital, “Corinth Capital is attractive to us because of the way it applies its considerable treasury and forex skills in the niche focus area of wine and fruit export and import.
“Given the recent development of a BEE charter for the industry, black economic empowerment has recently become more important in agriculture. This makes our investment in Corinth Capital quite timely.”
In terms of the deal, Motse Capital acquired a 26% equity stake in Corinth Capital.
The deal provides Corinth Capital with access to Motse Capital’s network of financial services and Gauteng contacts and will assist growth in the business of Corinth Capital. The deal will also increase the reach of both companies in domestic and international markets.
“We were seeking a partner from within the financial services sector whose values and strategies are aligned with our vision for client service excellence and growth. We have found that partner in Motse Capital,” said Erik Marais, CEO of Corinth Capital.
The deal means that Corinth Capital, an approved category 2 financial services provider regulated by the Financial Services Board, is a black empowered firm.
Corinth Capital’s clients also receive benefits from the deal. Clients will earn BEE scorecard points if they use Corinth’s services.
“Motse Capital taking a seat on Corinth’s board enables us to benefit from the perspectives of our partner, and will help us to provide tangible benefits to our client base,” said Marais.
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