[South Africa] JSE, Investec share plan deal closes
03-09-2021 11:13:00 | by: Pie Kamau | hits: 1072 | Tags:

The Johannesburg Stock Exchange (JSE), welcomed new employees in the JSE Investor Service (JIS) business, who join the group following the acquisition by JIS of a portion of its share plan services business from Investec Share Plan Services Proprietary Limited (ISPS) in June this year.

Following the conclusion of the transaction, the ISPS staff transfer to JIS, effective from 1 September 2021. The transfer of the staff will expand JIS’s portfolio of services it offers to its clients and helps diversify the JSE’s revenue streams and create new annuity income.

“I am pleased to welcome these highly skilled members to the JSE family. The new members will work with the broader JIS team to provide solutions that meet our clients’ evolving needs. This will enable us to deliver on our strategy to improve and streamline services to issuers and corporate entities in South Africa,” said Valdene Reddy, JSE’s Director of Capital Markets.

JIS is a share registry, custody and investor service provider. It is a critical function of operating a financial market as it maintains the registers of listed and unlisted companies including JSE Top 40 companies with more than 2.5 million shareholder records under management.

The transaction has given JIS a strong foothold in the share plans business via an arrangement that includes a licensing and support services agreement with ISPS for the share plan services administration platform. ISPS retains the brokerage business within its existing operation. 

“The JSE has a robust inorganic growth strategy with a focus on acquisitions that will deliver new revenue streams for the future. JIS is a  critical component of this long-term strategy and will help us to deliver on the trust and experience invested in the JSE,” adds Reddy.

With the acquisition having given JIS access to the state-of-the-art, market-leading system, the group is now the largest share plans business in the South African market. Through this transaction, JIS has added 90 clients to its client base, helping it to expand its Broad-Based Black Economic Empowerment (B-BBEE) and employee share administration services product offering. 

On 9 June 2021, the JSE announced the incorporation of JIS as a wholly owned subsidiary of the JSE after acquiring the minority shareholding of 25.15% from LMS Partner Holdings.