RMB Holdings

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RMB Holdings Limited
RMH
Company typePublic
JSE: RMH
IndustryBanking and finance
Founded1987
HeadquartersSandton, South Africa
Key people
Gerrit Ferreira (Chairman)
Increase ZAR: 7.77 billion (2015)[1]
Total assetsIncrease ZAR: 36.52 billion (2015)
Total equityIncrease ZAR: 35.17 billion (2015)
Websitermh.co.za

RMH, previously known as Rand Merchant Bank Holdings, is a South African diversified financial services holding company.[2]

Overview[edit]

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

History[edit]

RMH 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[edit]

In 1987, RMH was found as the holding company for the expanding Rand Merchant Bank.[6] RMH was listed through a reverse listing when it took control of Momentum Life on 1 July 1992.[5][7] RMH acquired 30% and 28.7% stake in Momentum Life from ABSA and Remgro respectively. RMH 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, RMH 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 RMH 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[edit]

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, RMH, 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 RMH 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[edit]

RMH's investment include:[18]

  • RHM Property (RMHP) – 100% Shareholding – This is the property arm of RMH. 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.

RMH previously held a 34.1% stake in FirstRand which it unbundled to its shareholders in June 2020. This left the holding company with its property portfolio listed above as its only investments.[19] Its stock is listed on the JSE and the Namibian Stock Exchange.[11]

Ownership[edit]

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

RMH
Rank Name of Owner Percentage Ownership
1 Financial Securities Limited (Remgro) 28.2
2 Royal Bafokeng Holdings Proprietary Limited 15.0
3 Public Investment Corporation 10.0
4 LL Dippenaar 5.3
5 Others Local and International Investors 41.5
Total 100.00

Governance[edit]

RMH is governed by a sixteen-person board of directors with Gerrit Thomas Ferreira as the chairman of the board. 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[edit]

References[edit]

  1. ^ a b c "RMB Holdings 2015 Annual Report" (PDF). RMB Holdings. 30 June 2015. Retrieved 29 December 2015.
  2. ^ "RMBH - Our business model". RMH. 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. ^ a b 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. Archived from the original on 11 October 2017. Retrieved 29 May 2015.
  10. ^ "RMB Holdings - 1998 Annual Report" (PDF). RMB Holdings. 30 June 1998. Retrieved 29 December 2015.
  11. ^ a b c "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. Archived from the original (PDF) on 29 November 2014. 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. ^ "New era for RMB Holdings as shareholders vote in favour of unbundling FirstRand".
  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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