Banking services provider Nedbank Corporate and Investment Banking (CIB) has advised independent asset manager Coronation Fund Managers on a broad-based black economic empowerment (BBBEE) transaction.

The deal increases Coronation’s black ownership to over 51%, cementing its leadership in the financial sector and aligning its operations with transformative goals.

Achieving several key objectives, this transaction is said to benefit its employees, shareholders and communities.

Pivotal to the transaction are two trusts.

The Imbewu Trust facilitates employee share ownership through an employee share ownership scheme, enabling participating black employees to directly benefit from the company’s success and create congruency with shareholder interests.

The Ho Jala Community Trust will support a range of black beneficiaries through selected public benefit organisations, extending the transaction’s impact to communities.

These trusts aim to extend the transaction’s benefits beyond Coronation’s immediate operations.

Nedbank CIB worked closely with Coronation and its other advisers to provide strategic corporate advice and transaction sponsor services to meet client, BBBEE, financial and regulatory objectives and requirements.

“This transaction is a testament to Coronation’s commitment to meaningful BBBEE outcomes and inclusive growth. By increasing our black ownership to over 51%, we are not only exceeding regulatory requirements but also driving meaningful change for our employees, shareholders and communities.

“The invaluable role played by Nedbank CIB as our corporate finance adviser and transaction sponsor exemplifies how strategic collaboration can lead to transformative outcomes,” says Coronation CEO Anton Pillay.

“This transaction shows how meaningful transformation and business growth can go hand in hand. We worked closely with Coronation and its other advisers to structure a bespoke solution that achieved the transaction’s objectives,” says Nedbank corporate finance principal Mark Beyers.