BrandWikiReturn

RMB Holdings

RMH (officially RMB Holdings Limited) is a South African diversified financial services holding company.[1]

Overview

RMH is listed on the JSE, and is headquartered in Sandton, South Africa.

History

RMH traces its roots from Rand Consolidated Investments (RCI) and Rand Merchant Bank, which were founded in 1977 and 1968 respectively. RCI was co-founded by Paul Harris, Gerrit Ferreira and Lauritz Dippenaar.[2]

The company's 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.[3] The newly created entity took up the Rand Merchant Bank name.[4]

1987 to 2010

In 1987, RMH was founded as the holding company for the expanding Rand Merchant Bank.[5] RMH was listed through a reverse listing when it took control of Momentum Life on 1 July 1992.[4][6] 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%.[7] In the same year, the group founded Discovery Limited along with Adrian Gore as a subsidiary of Momentum Life.[8]

On February 28, 1998 the group founded OUTsurance, a short-term insurance company.[9] 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.[10]

This merger gave rise to First Rand, which 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.[11] FirstRand had two main subsidiaries, FirstRand Bank and FirstRand Insurance, holding banking and insurance investments respectively.[10]

2011 to date

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.[12]

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.[13]

This restructure was completed on 7 March 2011.[14] The shares of RMIH started trading at the JSE on the same day.[15] RMB Structured Insurance Limited[16] 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.[18]

Investments

RMH's investment include:[19]

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.[20] Its stock is listed on the JSE and the Namibian Stock Exchange.[10]

  • 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.

Ownership

The shares of RMH are listed on the JSE. As of the shareholding of RMH was as follows:[18]

Governance

RMH is governed by a 16-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 share their management team and resources under a management contract.[21]

See also

• Rand Merchant Insurance Holdings

• FirstRand

• MMI Holdings Limited

• Discovery Limited

• Remgro

• JSE Limited

References

  1. RMBH - Our business model RMH, retrieved 2015-12-28^
  2. Phakamisa Ndzamela. FirstRand's Founders: Leadership lessons Financial Mail, 16 October 2014, retrieved 29 December 2015^
  3. Africa's Hidden Billionaires: New Billionaire Emerges as RMB Stock Rises Ventures Africa Magazine, May 20, 2013, retrieved December 29, 2015^
  4. Patrick Cairns. The Investment Case – RMB Holdings Ltd Moneyweb, Moneyweb Holdings, 1 December 2010, retrieved 29 December 2015^
  5. RMBH - History RMBH, retrieved December 29, 2015^
  6. The history of Momentum MMI Holdings, retrieved December 25, 2015^
  7. Momentum Life and RMB form 10 billion group Insurance Times, June 1, 1992, retrieved December 29, 2015^
  8. Exceptional, January–June 2011 - Medicine Man: Discovery Ernst & Young Global Limited, Ernst & Young, retrieved 2015-05-29^
  9. RMB Holdings - 1998 Annual Report RMB Holdings, 1998-06-30, retrieved 2015-12-29^
  10. First Rand - Abridged Revised Listing Particulars Imara Investing in Africa, First Rand Limited, May 25, 1998, retrieved November 16, 2014^
  11. First Rand Annual 1999 Report First Rand Limited, June 30, 1998, retrieved November 16, 2014^
  12. MMI Holdings Limited - Revised Listing Particulars MMI Holdings Limited, September 6, 2010, retrieved March 27, 2010^
  13. RMB Holdings Limited - Circular to shareholders regarding the RMBH restructuring. RMB Holdings Limited, 3 February 2011, retrieved 13 December 2014^
  14. 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 rmbh.co.za, Rand Merchant Insurance Holdings, 3 February 2011, retrieved 13 December 2014^
  15. Rand Merchant Insurance makes JSE debut fin24.com, Fin24, 7 March 2011, retrieved 13 December 2014^
  16. RMB Structured Insurance Limited^
  17. Underwriters Prime Meridian Direct, 12 April 2017^
  18. RMB Holdings 2015 Annual Report RMB Holdings, 2015-06-30, retrieved December 29, 2015^
  19. RMBH 2016 Annual Report RMBH, retrieved 2017-01-19^
  20. New era for RMB Holdings as shareholders vote in favour of unbundling FirstRand^
  21. Patrick Cairns. The Investment Case – Rand Merchant Insurance Holdings Ltd Moneyweb.co.za, Moneyweb Holdings, 8 February 2012, retrieved 13 December 2014^