Mandlalux, a subsidiary of JSE-listed asset manager, Vunani, on Thursday said it had acquired 100 percent of the shares of Fairheads International Holdings (SA) for R210 million ($17.2 million).

Vunani believes the purchase of Fairheads is an opportunity for Vunani to get exposure to a new market. The acquisition also permits Vunani to increase and diversify its existing service delivery within the financial services sector, it said on Thursday.

“Fairheads operates in an industry where Vunani currently has no exposure. [But] Vunani will be able to add value and assist in the growth of Fairheads via Vunani’s current relationships…Fairheads’ revenue is annuity in nature and represents an excellent acquisition opportunity for Vunani and its shareholders,” Vunani added.

Fairheads is an investment holding firm which presently holds two wholly-owned subsidiaries, Fairheads Benefit Services and Fairheads Corporate Service.

The deal is subject to the approval by Vunani shareholders that the funding contracts be entered into in writing and become unconditional.

Another condition is that South Africa’s competition authorities should approve the deal in terms of the Competition Act. And an approval in writing for the implementation of the sale of shares agreement from the Registrar of Pension Funds is also a condition.