RMB Holdings

RMB Holdings Limited (RMBH), previously known as Rand Merchant Bank Holdings, is a South African diversified financial services holding company.[2]

RMB Holdings Limited
TypePublic
JSE: RMH
IndustryBanking and finance
Founded1987
HeadquartersSandton, South Africa
Key people
Gerrit Ferreira (Chairman)
Hermanus Bosman (CEO)
ZAR: 7.77 billion (2015)[1]
Total assets ZAR: 36.52 billion (2015)
Total equity ZAR: 35.17 billion (2015)
WebsiteHomepage

Overview

RMB Holdings is listed on the JSE with its headquarters in Sandton, South Africa.

History

RMB Holdings traces its roots from Rand Consolidated Investments (RCI) and Rand Merchant Bank that were founded in 1977 and 1968 respectively. RCI was co-founded by Paul Harris, Gerrit Ferreira and Lauritz Dippenaar.[3] Its objective was to offer leveraged leasing and off-balance-sheet financing to businesses. RCI failed to secure a banking licence, this led to the firm joining forces with Johann Rupert's Rand Merchant Bank in 1985.[4] The newly created entity took up the Rand Merchant Bank name.[5]

1987 to 2010

In 1987, RMB Holdings was founded as the holding company for the expanding Rand Merchant Bank.[6] RMB Holdings was listed through a reverse listing when it took control of Momentum Life on 1 July 1992.[5][7] RMB Holdings acquired 30% and 28.7% stake in Momentum Life from ABSA and Remgro respectively. RMB Holdings also transferred its entire stake in Rand Merchant Bank to Momentum thereby increasing its stake in Momentum Life to 76.4%.[8] In the same year, the group founded Discovery Limited along with Adrian Gore as a subsidiary of Momentum Life.[9]

On February 28, 1998 the group founded OUTsurance, a short-term insurance company.[10] In April 1998, RMB Holdings entered into an agreement with Anglo American Corporation of South Africa (now Anglo American plc) to merge their financial services into a unified group.[11] This merger gave rise to First Rand and was listed on the Johannesburg Stock Exchange on May 25, 1998, with Anglo American and RMB Holdings owning 20.43% and 25.03% of the authorized capital of FirstRand respectively.[12] FirstRand had two main subsidiaries i.e. FirstRand Bank and FirstRand Insurance, holding banking and insurance investments respectively.[11]

2011 to date

On March 31, 2010, Momentum merged with Metropolitan Holdings to form MMI Holdings. This followed an agreement between the boards of Metropolitan Holdings, First Rand and Momentum Group.[13]

In March 2011, RMB Holdings, Remgro and FirstRand entered into an agreement to restructure their insurance assets. This was done by spanning off their entire insurance portfolios (i.e. MMI Holdings, Discovery Limited, OUTsurance and RMB-SI Investments) to RMI Holdings, a wholly owned subsidiary of RMB Holdings and subsequently unbundling the entire shareholding in RMI Holdings to their shareholders.[14] This restructure was completed on 7 March 2011.[15] The shares of RMIH started trading at the JSE on the same day.[16]RMB Structured Insurance Limited underwrites customer policy benefits for Prime Meridian Direct (Pty) Ltd.[17]

After the RMI Holdings spin-off, the firm remained as a bank holding company.[1]

Investments

RMB Holdings' investment include:[18]

  • FirstRand – 34.1% Shareholding.[1] – FirstRand one of the Big four banks in South Africa.[19] Its stock is listed on the JSE and the Namibian Stock Exchange.[11]
  • RMB Property – 100% Shareholding – This is the property arm of RMB Holding. It holds the following investments:
    • Atterbury – 27.5% Shareholding – Atterbury is a developer of prime commercial, retail and industrial property across South Africa such as Mall of Africa, the rest of Africa and Europe.
    • Propertuity - 34% Shareholding – Founded by Jonathan Liebmann, Propertuity is focused on the redevelopment of dilapidated industrial and office areas in Johannesburg and Durban.

Ownership

The shares of RMB Holdings are listed on the JSE. As of June 2015 the shareholding of RMB Holdings was as follows:[1]

RMB Holdings Limited
RankName of OwnerPercentage Ownership
1Financial Securities Limited (Remgro)28.2
2Royal Bafokeng Holdings Proprietary Limited15.0
3Public Investment Corporation10.0
4LL Dippenaar5.3
5Others Local and International Investors41.5
Total100.00

Governance

RMB Holdings is governed by a sixteen-person board of directors with Gerrit Thomas Ferreira as the chairman of the board and Hermanus Lambertus Bosman as the CEO.[1] This structure is similar to that of RMI Holdings since the two firms same their management team and resources under a management contract.[20]

See also

References
  1. "RMB Holdings 2015 Annual Report" (PDF). RMB Holdings. 30 June 2015. Retrieved 29 December 2015.
  2. "RMBH - Our business model". RMBH. Retrieved 28 December 2015.
  3. Ndzamela, Phakamisa (16 October 2014). "FirstRand's Founders: Leadership lessons". Financial Mail. Retrieved 29 December 2015.
  4. "Africa's Hidden Billionaires: New Billionaire Emerges as RMB Stock Rises". Ventures Africa Magazine. 20 May 2013. Retrieved 29 December 2015.
  5. Cairns, Patrick (1 December 2010). "The Investment Case – RMB Holdings Ltd". Moneyweb Holdings. Retrieved 29 December 2015.
  6. "RMBH - History". RMBH. Retrieved 29 December 2015.
  7. "The history of Momentum". MMI Holdings. Retrieved 25 December 2015.
  8. "Momentum Life and RMB form 10 billion group". Insurance Times. 1 June 1992. Retrieved 29 December 2015.
  9. "Exceptional, January–June 2011 - Medicine Man: Discovery". Ernst & Young Global Limited. Ernst & Young. Retrieved 29 May 2015.
  10. "RMB Holdings - 1998 Annual Report" (PDF). RMB Holdings. 30 June 1998. Retrieved 29 December 2015.
  11. "First Rand - Abridged Revised Listing Particulars". Imara Investing in Africa. First Rand Limited. 25 May 1998. Archived from the original on 29 November 2014. Retrieved 16 November 2014.
  12. "First Rand Annual 1999 Report" (PDF). First Rand Limited. 30 June 1998. Retrieved 16 November 2014.
  13. "MMI Holdings Limited - Revised Listing Particulars" (PDF). MMI Holdings Limited. 6 September 2010. Retrieved 27 March 2010.
  14. "RMB Holdings Limited - Circular to shareholders regarding the RMBH restructuring" (PDF). RMB Holdings Limited. 3 February 2011. Retrieved 13 December 2014.
  15. "Pre-listing statement of RMI Holdings relating to the listing of RMI Holdings on the JSE with effect from the commencement of business on 7 March 2011" (PDF). rmbh.co.za. Rand Merchant Insurance Holdings. 3 February 2011. Retrieved 13 December 2014.
  16. "Rand Merchant Insurance makes JSE debut". fin24.com. Fin24. 7 March 2011. Retrieved 13 December 2014.
  17. "Underwriters". Prime Meridian Direct. 12 April 2017.
  18. "RMBH 2016 Annual Report" (PDF). RMBH. Retrieved 19 January 2017.
  19. "Banks and foreign exchange in SA". SouthAfrica.info. Brand South Africa. Retrieved 28 June 2012.
  20. Cairns, Patrick (8 February 2012). "The Investment Case – Rand Merchant Insurance Holdings Ltd". Moneyweb.co.za. Moneyweb Holdings. Retrieved 13 December 2014.
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