RMB Holdings receives green light to unbundle its entire stake FirstRand Bank
RMH's Herman Bosman: The unbundling ends a multi-decade relationship between RMH and FirstRand.
RMB Holdings (RMH) has received approval from shareholders to proceed with the unbundling of its entire stake in FirstRand Bank.
About the appointment, RMB Holdings CEO Herman Bosman says:
"The FirstRand unbundling by RMB Holdings is truly a momentous event in the corporate history of our country as it ends a multi-decade relationship between RMB Holdings and FirstRand. A relationship which has been rewarding to shareholders, have produced many prominent business leaders and has produced two of the country’s best founder-led start-ups in Discovery and OUTsurance. This is of course in addition to the creation of the continent’s largest bank."
RMH announced in November 2019 that it was looking to unbundle its 34.1 percent stake in FirstRand Bank. At a virtual AGM on 1 June, 100 percent of RMH’s shareholders, which include Remgro, Royal Bafokeng Holdings and the Public Investment Corporation, voted for the unbundling. The unbundling is set to take place on 26 June 2020, marking the end of a 27-year history between the two companies.
According to a statement, RMH will remain listed on the JSE after the unbundling, leaving the company with its property portfolio as its only remaining asset without links to the financial services industry.
RMH Property CEO Brian Roberts said that, while the value of most SA real estate investment trusts had been decimated, he believes there’s still a lot of value in the property sector.