The Johannesburg Stock Exchange (JSE) Limited, the operator of the Johannesburg Stock Exchange (JSE), Africa’s largest, multi-asset class stock exchange, has announced that it has received the green light to acquire a majority stake in Link Market Services South Africa (Proprietary) Limited from the Competition Tribunal. The Tribunal’s approval is subject to various conditions that will be communicated in due course, the JSE said in a statement sent to Business A.M.
Pheliswa Mayekiso, the JSE media and internal communications manager, who signed the statement disclosed that the acquisition will see JSE Limited acquire 74.85 per cent shareholding in Link SA for a cash amount of 224.5 million South Africa rand, with Link SA’s Black Economic Empowerment (BEE) shareholder retaining the remaining 25.15 per cent. The transaction is expected to be concluded within the first week of November 2020.
“I am very pleased with the positive outcome from the Competition Tribunal. This acquisition paves the way to exciting new opportunities in the issuer services space. The Link SA acquisition is part of the JSE’s ongoing strategy to grow sustainably and diversify its revenue,” the statement quotes Leila Fourie, the JSE chief executive officer, as saying.
But Mayekiso further explained that through Link SA, the JSE intends to introduce products and services to corporate entities in South Africa with a focus on shareholder communication and engagement; while, as a leading global exchange, the JSE co-creates, unlocks value and makes real connections happen.
Link SA is described as the second largest share registry business in South Africa with a client base that includes six of the top 40 issuers, offering, primarily, transfer secretarial and registry services, including registry maintenance, such as maintaining companies’ share registers; treasury services, such as calculating and managing the payment of dividends and distributions for companies; and corporate actions, such as planning and managing rights issues, elections and dividend payments on behalf of companies.