South African Deputy President Cyril Ramaphosa is set to make in excess of R2.5 billion ($200 million) from the sale of his investment company, Shanduka Group to Pembani Group.<\/p>\n
This is according to Forbes<\/a>, who said that, while the terms of the deal have not been disclosed, the businessman-turned-politician is set to earn at least $200 million from the sale.<\/p>\n Forbes said it used a 2011 transaction in which the China Investment Corporation paid $245 million for a 25% stake in the firm, as a benchmark.<\/p>\n It further cited a local investment banker as saying that the deputy president may have scored more than $300 million (R3.7 billion) in the deal.<\/p>\n Pembani Group, which is controlled by Phuthuma Nhleko, the chairman of Africa’s biggest mobile operator, MTN Group, will merge with Shanduka Group, the companies said in a statement on Monday.<\/p>\n \u201cThe group will have a portfolio value in excess of 9 billion rand ($734 million) which will give it significant scale, with liquidity to pursue value-creating opportunities in sub-Saharan Africa,\u201d Pembani said in a statement.<\/p>\n Shanduka has stakes in 29 businesses, including Standard Bank Group, MTN,\u00a0McDonald\u2019s South African subsidiaries (70%), Coca-Cola bottling plants (70%), and a coal-mining venture with Glencore.<\/p>\n According to Bloomberg, Ramaphosa\u2019s family trust had a 30% stake in Shanduka, which he founded in 2001.<\/p>\n The news agency put Ramaphosa’s fortune at $550 million (R6.75 billion), behind only Patrice Motsepe as the country’s wealthiest black South African. Nhleko is believed to have assets of $142 million.<\/p>\n Pembani said Ramaphosa will have no direct shareholding or commercial interests after exiting ‘with minorities’.<\/p>\n Last week, Pembani announced that the Pembani Remgro infrastructure fund had raised $245 million, with a promise of another $100 million, for investment in infrastructure in sub-Saharan Africa.<\/p>\n Pembani is chaired by Nhleko, while former Standard Bank and Absa executive Kennedy Bungane is chief executive officer.<\/p>\n Johann Rupert-backed fund raises R4 billion<\/strong><\/a><\/p>\nMore on wealth in SA<\/h3>\n