African Equity Empowerment Investments Limited (AEEI) today confirmed that the Group acquired 3.8% of the privately placed shares in Sygnia Limited (Sygnia) upon listing.
Group Chief Executive Officer of AEEI, Mr Khalid Abdulla says, “The deal is significant in the Group’s strategy to diversify its business and enhance stakeholder value through strategic and innovative investments.”
Abdulla says, “Sygnia is the second largest fund multi-management company in South Africa in South Africa, is a significant player in the local market and has plans to grow internationally. This acquisition is in line with our strategy of pursuing strategic high growth investments as a value adding partner of choice. The Group’s efforts in this regard are ongoing.”
Over the past few years AEEI has successfully acquired strategic investments in British Telecoms (‘’BT”), a Swedish multinational company, SAAB SA and South African foods group, Pioneer Foods Ltd.
“The key to the success of our strategy is our ability to add long-term value in the businesses we invest in”, says Abdulla.
This deal firmly entrenches AEEI’s position as a partner of choice in fast growing sectors. It also paves the way for the company to grow its asset base as well as increase its company’s shareholder value.
Sygnia has a strong management team with a successful track record with innovative strategies offering low cost and affordable products and services to a broad base of South Africans.
Sygnia is a fast growing “market disruptor” company which embraces innovation and unconventional/contrarian business strategies.
AEEI is certainly growing its portfolio and is said to be looking forward to the relationship between the two companies.
AEEI acquired 3.8% of the Sygnia privately placed shares at a subscription price of R8.40 (eight rands forty cents) per share. The share is currently trading over R14 per share.