Risk management and insurance broking firm Aon South Africa, which bought Glenrand MIB last year, said on Wednesday it would sell a 25.1% stake to the Vurhonga Consortium in a black economic-empowerment transaction.
Vurhonga Consortium comprises the Tamela Consortium and Precious Prospects, a women’s group.
Aon South Africa chairperson and CEO Anton Roux said the deal was a positive move towards broad-based empowerment, particularly with the strong female ownership within the consortium.
He said the company would continue to target strong growth in the public and corporate sectors, areas which it believed Vurhonga Consortium could use their expertise.
Vurhonga Consortium chairperson Vusi Mahlangu was pleased to pursue new growth areas after a period of acquisitive growth in the country.
Aon South Africa has engaged in a strong growth strategy in recent years, in which it has acquired QED Actuaries & Consultants, Shield Financial Services, Heritage Insurance Brokers, Pennant and Pinion Insurance Brokers and more recently, Glenrand MIB.
Roux said transformation would continue to play an important part of the company’s growth strategy in South Africa.
It is expected that the transaction will be concluded by the end of October.
During 2012, a portion of the shareholding held by Vurhonga Consortium, representing 3% of the common equity in Aon, would be allocated to an employee share ownership scheme including historically disadvantaged Aon employees, further enhancing the far-reaching nature of the transaction.
Precious Prospects chairperson Dr Namane Magau will resign from her position on the Santam board before joining the board of Aon South Africa.
Vurhonga Consortium’s Makole Maponya and Mahlangu will serve as its representatives on the board of Aon South Africa.
Aon South Africa employs more than 1 500 people in its 17 offices in South Africa, and over 2 000 people in Africa.