OREANDA-NEWS. June 10, 2010. Renaissance Capital, the emerging markets investment bank, announces today it has entered into an agreement to acquire 100 percent of BJM Securities, the brokerage business of South Africa's Barnard Jacobs Mellet (BJM) Group.

Renaissance Capital will pay a sum of no more than R207 million (USD 28.2 million) for BJM Securities.

The transaction is subject to BJM regulatory and shareholder approvals, although Renaissance Capital has obtained irrevocable undertakings from shareholders representing approximately 68% of BJM's issued ordinary share capital that they will vote in favor of the proposed acquisition.

Renaissance Capital announced its entry into South Africa in February 2010 and appointed Clifford Sacks, former South Africa Co-CEO at Merrill Lynch, to lead its South African and pan-African equities businesses. The acquisition of BJM Securities will significantly advance the Firm's build-out in South Africa.

Founded in 1985, BJM Securities is the leading independent full service broker-dealer in South Africa. The firm is known for its outstanding research franchise, having been ranked No.1 in South African research surveys.

“BJM Securities' high calibre team, market-leading research franchise and client-centric approach make it a perfect business and cultural fit for Renaissance Capital,” said Clifford Sacks of Renaissance Capital. “When completed, the acquisition will mark a major step in building the first truly pan-African investment banking franchise stretching from the Cape to Cairo.”

Renaissance Capital entered Africa in 2007, and today maintains offices in Nigeria, Kenya, Zambia and Ghana. Last year Renaissance Capital was one of the most active dealmakers on the continent, executing 18 transactions in 10 countries. It has carved out a particular niche in natural resources transactions in the oil, gas, mining and agricultural sectors. Over the last twelve months the Firm has raised USD 5.8 billion in equity and debt capital for clients in those sectors globally. In 2009, Renaissance Capital topped the league tables on London’s AIM market, acting on more equity capital markets and merger and acquisition transactions than any other investment bank.

In January 2010 Renaissance Capital hired former Investec head of South African equity sales Ali Khalpey to lead African sales in London. In March the firm promoted David Kuzmanich, one of the most senior South African salespeople in New York, to head equity sales in the United States. Last month former Bank of America Merrill Lynch South African head of trading Tony Marcia joined Renaissance Capital as Head of African Trading.

“This transaction is a strategic quantum leap for BJM Securities, presenting it with a strong and enviable growth path into frontier markets. We believe that Renaissance represents a best-fit for BJM Securities for its unique geographic footprint, its winning culture and adventurous spirit,” said Andile Mazwai, BJM Group Chief Executive Officer.

The transaction will not affect the other units of BJM Group – including BJM Private Client Services, the firm's wealth management business – which will remain independent.