STANLIB Limited

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STANLIB Limited. Acquisition by a BEE consortium of 25,2% 18 June 2003. STANLIB – company profile. Asset and wealth management group Created in 2002 Combined Liberty and Standard Bank asset management unit trusts linked product businesses. STANLIB organisational structure. - PowerPoint PPT Presentation

Text of STANLIB Limited

  • STANLIB LimitedAcquisition by a BEE consortium of 25,2%

    18 June 2003

  • STANLIB company profile Asset and wealth management groupCreated in 2002Combined Liberty and Standard Bankasset management unit trusts linked product businesses

  • STANLIB organisational structure Liberty Group

    STANLIBLimited

    STANLIBAsset ManagementSTANLIBWealth Management50%50%100%100%Standard Bank Group The factoryProduct / marketing /distribution arm

  • STANLIB Asset Management AUM 31 December 2002128,4TOTAL AUM1,1Africa30,2Unit trusts43,5Segregated funds53,6Life funds

    Rbillion

  • STANLIB Wealth Management FUA 31 December 200251,9TOTAL FUA7,9Linked products10,4Structured products28,8Single manager unit trusts

    Rbillion4,8Other

  • Value and fairness opinionSTANLIB valued at R1,4 billion for purposes of the transactionIndependent fair and reasonable opinion given by Deutsche Securities as to Libertys sale price for 12,6% of STANLIB

  • STANLIBs equity value has declined since its formation (from R1,8 billion to R1,4 billion) Relatively poor-performing equity markets have resulted in: a decline in the ratings of asset managers; a decline in assets under management; and a decline in operating earningsJSE ALL SHARE INDEX & PE RATIO 0 2,000 4,000 6,000 8,00010,00012,000Jan-00Jan-01Jan-02Jan-03Index 8101214161820PE Ratio (times)JSE All Share IndexJSE All Share Index PE ratio

  • MultiplesSTANLIB ASSETS UNDER MANAGEMENT AND FUM MULTIPLE0,98%0,92%1,19%0,81%0,78%1,00% 20,000 70,000120,000170,000220,00031-Dec-00Actual31-Dec-01Actual31-Dec-02Actual31-Mar-03Actual31-Dec-03ForecastFUM (R'millions) 0,2 0,4 0,6 0,8 1,0 1,2 1,4FUM multiple (%)STANLIB Asset Management Assets Under ManagementSTANLIB Wealth Management Funds Under AdministrationEquity value / FUM (excl. unit trusts in WM)Equity value / total FUM%

  • Rationale for transactionNational and business imperative to introduce empowerment partnershipLiberty and Standard Bank actively involved in the process of transformation in South AfricaEstablishment of an empowerment partnership with the goal, inter alia, to support South Africas socio-economic objectives

  • BenefitsMaintenance of current PIC and other asset management mandatesIncreased fund inflows demarcated specifically for empowered asset managersFuture business opportunities including expansion into Africa

  • Consortium Safika (51%)Investment holding company which facilitates greater black economic participation in South AfricaDirectors include Saki Macozoma, Moss Ngoasheng and Vuli CubaBBET (35%)Created for the benefit of organisations representing broad-based communities from historically disadvantaged backgrounds

  • Consortium, continuedNduna Trust (9%)Personal trust of Ronnie Ntuli who:Is a respected advisor to South African and international corporates and investorsImmediate past President of the Johannesburg Metropolitan Chamber of Commerce and IndustryRecently appointed CEO of Andisa Capital

  • Consortium, continuedSimeka (5%)Investment holding company which provides management consulting, capacity building, employee benefits solutions, communications and marketing services to the Government, public sector and international agencies

  • TransactionNewco will be owned 51% by Safika and 49% by the remainder of the ConsortiumNewco will acquire 25,2% of STANLIB, 12,6% from each of Standard Bank Group and Liberty GroupNewco is incentivised to introduce new mandates

  • Proposed future structure

  • Dividend policy100% of profit after taxation per annum, subject to working capital and capital expenditure requirements, while the BEE funding is outstandingThereafter subject to STANLIB boards discretion, subject to a mimimum of 50% of profits available for distribution

  • Composition of the BoardThe Chairman will be Saki Macozoma, who will make himself available to be appointed as the Chairman of STANLIB for a mimimum of three yearsSTANLIB board will consist of maximum 16 directorsThe Consortium will have the right to appoint one executive director

  • Composition of Board, continuedNominations pro rata to shareholding at the time, subject to a minimum of 10% shareholding required to appoint the first directorNewco entitled to appoint Chairman of STANLIB, subject to Standard Bank and Liberty approvalLiberty entitled to appoint CEO of Asset ManagementStandard Bank entitled to appoint CEO of Wealth Management

  • ExclusivityNewco will be the exclusive empowerment partner of STANLIB in Africa (subject to commercial necessity)In return, Newco and all of its shareholders have undertaken to restrict their investment in asset management and wealth management in Africa to STANLIB

  • In summaryWe remain proactive in developing the empowerment credentials of Standard Bank Group and Liberty GroupSTANLIB empowerment structure now introducedAndisa Capital was launched recentlyMore on the horizon

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