Johannesburg -Rand Merchant Investment Holdings advised shareholders on Thursday that the company has increased its shareholding in OUTsurance.
RMI's shareholding in OUTsurance will increase from 84.1% to 87.5%.
Rand Merchant Investment and OUTsurance have entered into an agreement in terms of which RMI will dispose of a 49% interest in RMI's wholly-owned subsidiary, Main Street 1353, to OUTsurance.
The proposed transaction will result in the 29.9% shareholding Main Street acquired in Hastings Group on 1 March 2017 being held in a 51%:49% partnership between RMI and OUTsurance.
The proposed transaction will be concluded on similar terms to RMI's initial investment in Hastings. OUTsurance will fund the proposed transaction through surplus cash and the issue of new shares at an effective OUTsurance equity value of R29.2bn.
The proposed transaction remains subject, inter alia, to the requisite regulatory approvals.
As set out in OUTsurance's interim results, certain members of the executive team have recently become non-executive directors. This change in roles involved them indicating their intention to dispose of a portion of their OUTsurance shares.
RMI has exercised its pre- emptive rights to acquire these shares. The management acquisition was executed at an effective OUTsurance equity value of R28.9bn.
RMI issued 20 000 000 new shares to existing RMI shareholders and the proceeds were utilised to fund the management acquisition.
Following publication of this announcement, caution is no longer required to be exercised by RMI shareholders when dealing in their RMI shares.Read Fin24's top stories trending on Twitter: Fin24’s top stories