Prescient in deal to boost black ownership

Financial management and investment company Prescient has entered into a BEE deal that will boost the company’s black ownership to 69%. It announced on Thursday that it is increasing the interests of both its staff and its strategic BEE partner Sithega.

The deal, the value of which has not been disclosed, will see Stellar Capital Partners sell its stake in Prescient.

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Stellar bought a stake in the company following Prescient’s delisting from the JSE in 2017, and the following year diluted its investment from 49% to 19.4% while facilitating a staff and BEE deal. It held the balance of its interest in Prescient via a preference share in the Prescient Empowerment Trust.

As part of the latest transaction, Prescient’s staff economic interest will increase to 25% and Sithega’s to 36%, the company said.

‘Meaningful participation’

With its staff now owning a quarter of the business, the company has achieved part of its vision to see meaningful employee participation, said Willem Venter, CEO of Prescient Holdings, which boasts R1 trillion in assets under administration.

The company said the Prescient Staff Share Scheme will now take up 7.8% of Stellar’s remaining 19.4% interest, while Sithega takes up 11.6%.

Sithega is a black-owned and black-run investment holding company whose core operations are focused on asset management, life insurance and short-term insurance. It was established in 2018 and is led by managing director Thabo Dloti.

Dloti also sits on the boards of Prescient Holdings and Prescient Investment Management.

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Commenting on the deal, Dloti said the opportunity to increase Sithega’s holding in Prescient is the foundational building block of the company’s vision to provide end-to-end financial solutions to the broader South African market.

“Sithega and Prescient have a shared belief in the crucial role employees play in delivering on this vision, and thus it’s only fitting that they have ownership in a business they are helping to build,” he said.

Peter van Zyl, CEO of Stellar Capital Partners (also a previously listed company) said the company is proud to be a partner in the transaction.

“We remain committed to building on our relationship with Prescient and the journey we started in 2017,” he said.

Stellar is primarily focused on investing in unlisted assets.