PRIVATE equity firm Brainworks Capital projects a busy year in advisory mandates but were still to get their fees from the $1, 8 billion worth of indigenisation deals they brokered.
In a letter to shareholders, Brainworks said the fees that would have been earned by the company on these transactions were not accrued during the 2013 financial year, pending government’s decision on the wayforward to close the deals.
Brainworks were the advisors in five indigenisation transactions in the mining sector where companies agreed to sell 51% shareholding to locals in compliance with the indigenisation legislation.
The transactions include the Zimplats deal ($971 million), Mimosa ($550 million), Unki ($142 million), Pretoria Portland Cement ($28 million) and the Caledonia Mining Corporation ($30 million).
The transactions could not be fully consummated as various arms of government could not agree on the way forward.
“The fees that would have been earned by the Company on these transactions were not accrued during the 2013 financial year, pending the Government of Zimbabwe’s decision on the way forward to close the deals,” Brainworks said.
It said 2014 “promises to be a busy year for the company in respect of advisory mandates after it was appointed to act as a key advisor to Atlas Mara on various banking sector investment opportunities on the African continent”.
In April, Brainworks was appointed as advisors to Atlas Mara Co-Nvest Limited, an emerging banking group focused on Africa and co-founded by ex-Barclays Plc chief executive officer Bob Diamond and billionaire Ashish Thakkar.
Brainworks successfully acted as advisors to Atlas Mara on the acquisition of controlling shareholding in African Banking Corporation of Zimbabwe Limited, a regional banking group, by Atlas Mara.