Nedbank CIB advises Coronation on DealMakers’ ‘BEE Deal of the Year’

Coronation Fund Managers was lauded for its significant BBBEE transaction at the 2024 Ansarada DealMakers Awards, where it was named the winner of the ‘BEE Deal of the Year’ category.

Nedbank Corporate and Investment Banking (CIB) acted as the corporate adviser and transaction sponsor to Coronation on this landmark transformation deal.

This prestigious accolade underscores Coronation’s ongoing commitment to BBBEE as a natural progression in its transformation journey — and Nedbank CIB’s dedication to driving sustainable development and fostering economic growth in SA through advising on such transactions.

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 benefits Coronation’s black employees, shareholders and communities, proving that commercial success can drive positive change.

Among other key benefits, the transaction allows Coronation to enhance its competitive position, capitalise on growth opportunities that require higher black ownership and maintain its market leadership. It also positively impacts and contributes to meaningful transformative business practices in the broader financial services sector and, in particular, the asset management industry. 

At the heart of the transaction are two trusts: 

1. The Imbewu Trust, which facilitates black employee share ownership via an employee share ownership scheme, enabling participating black employees to benefit directly from the company’s success and create congruency with shareholder interests. 
   
   
2. The Ho Jala Community Trust, which will support a range of black beneficiaries through selected public benefit organisations, extending the impact of the transaction on communities. 

Together, these two trusts ensure that the benefits of this transaction are felt 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 satisfy a range of client, BBBEE, financial and regulatory objectives and requirements.

For Nedbank CIB, the transaction underscored its expertise in delivering bespoke solutions to achieve high-impact outcomes. Through its partnerships across critical sectors such as financial services, energy, infrastructure and mining, Nedbank CIB continues to drive innovation and create value in the markets it serves.

Nedbank CIB’s commitment to transformation and partnering with its clients on their BBBEE journeys is grounded in the bank’s mission to use its financial expertise to do good, and to deliver value to and through its clients.

Nedbank’s own transformation journey over the past two decades has extended beyond just achieving BBBEE compliance, but has also resulted in significant outcomes — both within the organisation and across society.

Nedbank CIB is dedicated to continue working with its clients — like Coronation — to unlock the potential of South African people from all sectors of society.

This article was sponsored by Nedbank CIB.