Brainworks founders George Manyere and Walter Kambwanji exit group
Brainworks Capital founders George Manyere and Walter Kambwanji have
sold their shareholding in the Johannesburg Stock Exchange listed
company and have now acquired the company’s investment in Getbucks.
According to an announcement from Brainworks, the company together
with GetSure Life Assurance entered into transactions with the two
non-executive directors — through their respective investment vehicles
— for the disposal of 163 769 298 shares constituting 14,98 percent of
GetBucks. This comes after the two agreed to dispose of their
Brainworks shares to the benefit of institutional investors who were
yet to receive their shares following a placement in October.
Brainworks placed 9 088 677 of its treasury shares with various
institutional investors in Zimbabwe in October subject to receipt of
approval by the Reserve Bank of Zimbabwe.
“The necessary Reserve Bank and other approvals have not yet been
obtained and accordingly Brainworks has, to date, not been able to
deliver the shares subscribed for to the institutional investors.
However, in order to be in a position to deliver to the said
institutional investors’ shares in Brainworks, certain directors of
the company have agreed to dispose of their Brainworks shares to the
institutional investors,” said the group in a statement.
Brainworks CEO Bretts Child told FinX he hoped the transaction would
increase the percentage shareholding held by the public and
“accordingly we hope it will improve liquidity.” He said since
listing, volumes traded have been low (just over 31 000 shares), but
that’s mainly because the Zimbabwean-based shareholders were unable to
trade as they do not have broker accounts in South Africa.
“The shares they hold are not in dematerialised form, being the JSE
preferred way to hold shares in order to facilitate trading. As such,
it is difficult to trade.” The company’s strategy is to focus on its
core asset base, being hospitality, real estate and related
“Accordingly, it is re-organising its investments in financial
services and part of its strategy is to exit its investment in
GetBucks.” The group said the funds raised pursuant to the transaction
will be applied towards the restructuring of the balance sheet in
order to position it for growth going forward. — Wires.