By Tonny Mafu
Johannesburg - Reunert, an electronics and electrical engineering group, and PSG Group, a financial services company, had formed a niche financing venture that would specialise in issuing asset-backed loans to the companies’ clients, they said yesterday.
The new company, which is yet to be named, is expected to start operating in December with a capital injection of R500 million. It will be merged with ZS Rational, a bridging finance company in which PSG has a majority stake.
The companies said PSG and Reunert would hold 39.9 percent and 49.9 percent, respectively. Michiel le Roux, the co-founder of Capitec Bank, would have 6.7 percent.
PSG and other shareholders would provide R376.5 million in capital and Reunert would contribute RC&C Finance, which is also known as Nashua Finance. RC&C has a financing book of R1.3 billion, which consists mainly of asset-backed finance to clients of companies within the Reunert group.
Johan du Preez, the chief executive of the joint venture, said the new company would, among other things, finance office furniture for Nashua Finance customers.
Jan Mouton, the chairman of PSG, said the venture was expected to earn at least R60 million in after-tax profit after the first year of operation. There were plans to list it to incentivise management.
(src: Business Day)