JSE Limited, the operator of the Johannesburg Stock Exchange (JSE), Africa’s largest, multi-asset class stock exchange, is pleased to announce that it has received approval from the Competition Tribunal to acquire a majority stake in Link Market Services South Africa (Proprietary) Limited (“Link SA”). The Tribunal’s approval is subject to various conditions that will be communicated in due course.
JSE Limited will acquire a 74.85% shareholding in Link SA for a cash amount of R224,5m, with Link SA’s Black Economic Empowerment (BEE) shareholder retaining the remaining 25.15%. The transaction is expected to be concluded on or about 2 November 2020.
Link SA is the second largest share registry business in South Africa, and has a client base that includes six of the top 40 issuers. Link SA primarily offers transfer secretarial and registry services, including registry maintenance (e.g., maintaining companies’ share registers), treasury services (e.g., calculating and managing the payment of dividends and distributions for companies), and corporate actions (e.g., planning and managing rights issues, elections and dividend payments on behalf of companies).
“I am very pleased with the positive outcome from the Competition Tribunal. This acquisition paves the way to exciting new opportunities in the issuer services space. The Link SA acquisition is part of the JSE’s ongoing strategy to grow sustainably and diversify its revenue,” says Leila Fourie, JSE CEO.
Through Link SA, the JSE intends to introduce products and services to corporate entities in South Africa with a focus on shareholder communication and engagement.