South Africa’s first and only known black billionaire (in dollars), mining magnate Patrice Motsepe plans to get into the financial-services business, according to FinancialMail and Bloomberg reports.
Motsepe is deputy chairman of Sanlam, the largest South Africa-based insurer. His planned new company, Ubuntu-Botho Financial Services, will be involved in asset management, private equity and insurance, IndependentOnline reports.
Sanlam sold a stake in its business to Ubuntu-Botho, a group of black investors led by Motsepe, in 2004.
The transaction was part of South Africa’s black economic empowerment efforts to increase black ownership and make up for decades of economic discrimination under apartheid, according to the report.
Motsepe, 52, is worth 25 billion rand ($2.4 billion), according to the Bloomberg Billionaires Index, and his stake in Cape Town-based Sanlam is valued at $625 million.
Ubuntu-Botho’s Sanlam investment plan matured in 2013, creating more than $1.4 billion in value for shareholders, the Financial Mail reported.
Motsepe is planning an initial public offering for the new company in Johannesburg, according to the Financial Mail.
The story of Motsepe’s planned new financial services company sparked debate about black economic empowerment and other things among readers commenting at IndependentOnline. Here are some of those comments:
– Vlooi said, “How did he acquire 25 billion rand in such a short time? Through buying up cheap mines from ANC connections?”
– Nkunzi responded, “Patrice is a businessman and a lawyer by profession. He happens to meet politicians through his businesses. He has worked hard to be where he is. Please give credit where (it) is due.”
– Khalsa Singh said, “So he hasn’t started business as yet, hasn’t generated any margins, has no clients, no track record, but he is launching an IPO, incurring underwriting costs for an unproven business in what is for him a new sector…sounds more like a debt-financing vehicle than a legitimate business. Not sure who would buy shares in such a company.”
– BLU82 said, “Motsepe — please start a bank that doesn’t charge bank charges. I will be your first customer!”
– gcokama1 said, “Please employ me as a research analyst Mr. Motsepe.”
Motsepe’s new company plans to expand into the rest of Africa and maybe Brazil, Russia and India, he told the magazine.
Motsepe is the fourth-richest South African, according to the 2014 Forbes list of billionaires, BusinessTech reports.
