MMI proposed restructuring of B-BBEE transaction18 May 2012
MMI and KTH have a long-standing relationship, which began in 2004 when Kagiso Trust Investments (Pty) Ltd. (now known as KTH following its merger with Tiso Group Proprietary Ltd.) acquired a 10% shareholding in MMI, through Off the Shelf Investments 108 (Pty) Ltd. ("SPV"), and became MMI's strategic empowerment partner ("BEE transaction"). MMI was created in 2010 pursuant the merger of Metropolitan Holdings Ltd. ("Metropolitan") and Momentum Group Ltd. ("Momentum"), resulting in a substantially larger and more diversified financial services group. MMI supports opportunities to improve its business and advance its BEE status in line with the philosophy of good corporate citizenship and in line with the philosophy of good corporate citizenship and the department of trade and industry's broad- based black economic empowerment codes of good practice ("codes"). Following the merger of Metropolitan and Momentum in 2010, KTH and the Metropolitan Empowerment Trust (the vehicle through which MMI management held an indirect interest in MMI) together held approximately 8% of MMI's total issued ordinary shares. The Metropolitan Empowerment Trust has since exited the BEE structure, and KTH has increased its effective shareholding in MMI. MMI, in line with the continued objective to advance its BEE status, intends to facilitate the refinancing of the BEE transaction through specific amendments which will result in a restructuring thereof ("BEE restructuring"). This announcement outlines the key details of the BEE restructuring.