Barnard Jacobs Mellet Holdings (BJM) and Renaissance Securities Holdings, a wholly owned subsidiary of Renaissance Capital, have entered into an agreement relating to the sale by BJM of its wholly owned subsidiary Barnard Jacobs Mellet Securities (BJM Securities) to Renaissance Securities (Rencap Securities) for a maximum cash consideration of $28.17m.

BJM has said that its board is currently considering various options against its strategic objectives regarding the application of the proceeds of the BJM Securities transaction.

In terms of the agreement, Rencap may terminate the BJM Securities transaction prior to closing in the event of any material adverse change occurring in respect of the business of BJM Securities and BJM fails to cure such material adverse change within a period of 30 days from receipt on a written notice, or if sooner, prior to the closing date.

BJM has said that the deal with Rencap is subject to approval by its shareholders, the Johannesburg bourse and the Reserve Bank.

Andile Mazwai, CEO of BJM Group, said: “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.”

Clifford Sacks of Renaissance Capital, said: “BJM Securities’ high calibre team, market-leading research franchise and client-centric approach make it a perfect business and cultural fit for 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.”

BJM is a South African listed holding company of leading stock broking and affiliated businesses. BJM Securities provides a broad offering of research products and execution capabilities in equity, derivative and fixed income markets.

Rencap is Russia-based investment bank that operates in high-opportunity emerging markets including Russia, the Commonwealth of Independent States (CIS), and sub-Saharan Africa, focusing on mergers and acquisitions, equity and debt capital markets as well as securities sales and trading.