JSE-listed financial service group, Vunani has announced that it is acquiring a significant minority shareholding in Harare-based – Purpose Asset Management, for an undisclosed sum to be settled in cash.

The plan to buy stakes in Purpose Asset Management, a company that provides asset management services to both institutional clients and high net-worth individuals, is an indication that Vunani is ready to conquer the Southern African region financial market.

The group has experienced exceptional business growth over the past few years owing to a combination of organic and acquisitions. In 2011, revenue showed 58 percent growth to R106 million ($12 million).

Speaking on the new development, Vunani CEO, Ethan Dube said, the company is very excited about the opportunities the acquisition presents.

Vunani, he said, has been providing advisory services in Zimbabwe for some time, but now the company will be able to emulate the full gambit of its diversified financial services business in the country.

“Even taking into account the political risk, Zimbabwe remains a good investment opportunity which will provide a platform for our expansion further into southern Africa,” Dube said.

“We are confident that the investment in Purpose Asset Management will be value adding and provide great exposure to Zimbabwe’s developing market which has shown increased growth potential in past the couple of years,” he added.

As part of the acquisition terms, Purpose Asset Management will change its name to Purpose Vunani Asset Management upon completion of the transaction.

Vunani however said that although the transaction had been approved by the Exchange Control department of the South African Reserve Bank, it is still subject to further conditions.

Vunani will have the option to purchase a further stake in order to achieve a shareholding of 55 percent in Purpose Asset Management. This is subject to regulatory approvals.

Vunani vast experience in various sub sectors in South Africa include asset management, investment banking and advisory, securities broking and property investments and developments.

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