CIC Takes Stake in Shanduka Group

China’s sovereign wealth fund has taken a 25% in South Africa’s unlisted Shanduka Group, Reuters reported. CIC reportedly paid 2 billion rand ($240 million) for the stake. CIC acquired its shares primarily from exiting shareholders, Old Mutual Private Equity and South African investment bank and asset manager Investec.

(Reuters) – China’s sovereign wealth fund has taken a 25 percent in South Africa’s unlisted but prominent Shanduka Group, the latest investment by the Asian giant keen to gain greater access to Africa’s resources.

Shanduka, whose chairman has close ties to the ruling African National Congress and with a diversified asset base that includes coal operations, said in a statement the China Investment Corporation had paid 2 billion rand ($240 million) for the stake.

Shanduka is an unlisted investment holding company chaired by influential politician-turned-businessman Cyril Ramaphosa.

China is South Africa’s biggest trade partner and the ANC has been seeking closer ties with the Beijing to build its economy.

Ramaphosa said the Chinese investment would help his firm branch out in Africa.

“This partnership will allow us to jointly explore future investment opportunities in South Africa and other parts of Africa”, Ramaphosa was quoted as saying.

CIC acquired its shares primarily from exiting shareholders, Old Mutual Private Equity and South African investment bank and asset manager Investec.

Standard Bank acted as the exclusive financial advisor to Shanduka and Standard Chartered Bank acted as exclusive financial adviser to CIC on the transaction.

(Reporting by Ed Stoddard; Editing by Jon Herskovitz)