Renaissance Capital acquires BJM Securities

South Africa-based BJM Holdings today announced the sale of its wholly owned subsidiary BJM Securities to the Russian emerging markets investment bank, Renaissance Capital.

Founded in 1985 as an institutional broker, BJM Securities entrenched itself as a research house and agency broker.

According to a press release, BJM Holdings believes that Renaissance Capital is uniquely placed to partner BJM Securities to leverage its platform, both domestically and offshore.

The statement further reads that “Renaissance will bring to BJM Securities acclaimed international research, a strong balance sheet and an unparalleled emerging market footprint. Renaissance Capital has top ranked operations in Lagos, Accra, Lusaka and Nairobi. Adding South Africa will make it unrivalled in sub-Saharan Africa.”

“This transaction is a strategic quantum leap for BJM Securities, presenting it with a strong and enviable growth path into frontier markets. We believe that Renaissance represents a best-fit for BJM Securities for its unique geographic footprint, its winning culture and adventurous spirit,” said Andile Mazwai, BJM group chief executive officer.

The new company will be known as “Renaissance BJM Securities”. It will be led by local RenCap CEO Clifford Sacks, formerly South Africa Co-CEO at Merrill Lynch. Tony Marcia, who recently joined Renaissance Capital from Bank of America Merrill Lynch South Africa, will be the head of Africa trading. All other positions remain the same at BJM.

“BJM Securities’ high calibre team, market-leading research franchise and client-centric approach make it a perfect business and cultural fit for Renaissance Capital,” said Clifford Sacks of Renaissance Capital. “When completed, the acquisition will mark a major step in building the first truly pan-African investment banking franchise stretching from the Cape to Cairo.”

The rest of the BJM businesses do not form part of this transaction, and will remain in the group. A key focus will be restructuring and streamlining the platform to allow BJM private client services the scope to expand its offering without any limitation. A further cautionary announcement relates to the status of other BJM Group operations and to the fulfilment of some of the group’s other strategic imperatives.