THE Johannesburg Stock Exchange (JSE) announced on Wednesday that its share plan deal with Investec was closed and due to this acquisition the JSE gains new employees who will work at the JSE Investor Service (JIS).
According to the bourse, following the conclusion of the transaction, the ISPS staff transfer to JIS, effective from September 1.
It said the transfer of the staff would expand the portfolio of services JIS offers its clients and help diversify the JSE’’ revenue streams and create new annuity income.
JSE director of capital markets Valdene Reddy said: “I am pleased to welcome these highly skilled members to the JSE family. The new members will work with the broader JIS team to provide solutions that meet our clients’ evolving needs. This will enable us to deliver on our strategy to improve and streamline services to issuers and corporate entities in South Africa.”
The JSE said the transaction gives JIS a strong foothold in the share plans business via an arrangement that includes a licensing and support services agreement with ISPS for the share plan services administration platform. ISPS retains the brokerage business within its existing operation.
“The JSE has a robust inorganic growth strategy with a focus on acquisitions that will deliver new revenue streams for the future. JIS is a critical component of this long-term strategy and will help us to deliver on the trust and experience invested in the JSE,” said Reddy.
According to the JSE, the group is now the largest share plans business in the South African market.
“Through this transaction, JIS has added 90 clients to its client base, helping it to expand its Broad-Based Black Economic Empowerment (B-BBEE) and employee share administration services product offering,” the JSE said.
On June 9, the JSE announced the incorporation of JIS as a wholly-owned subsidiary of the JSE after acquiring the minority shareholding of 25.15% from LMS Partner Holdings.
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