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Equity investors make bid for Alexander Forbes

Posted On: Oct. 19, 2006 12:00 AM CST

JOHANNESBURG, South Africa¬óBroker Alexander Forbes Group Ltd. has announced that a consortium of private equity investors has made an offer to its board to buy the group.

Alexander Forbes announced Thursday it had received an approach from a consortium led by Actis Africa Fund 2 LP acting through Cleansheets Investments (Proprietary) Ltd. The consortium had submitted a proposal to acquire the entire issued share capital of the Johannesburg-based broker for 8.3 billion Rand.

Alexander Forbes announced earlier this year it was considering a possible sale of the company to private equity investors.And in August the company announced the sale of its London-based International Financial Risk Services arm to United States broker Lockton Cos. Inc.

If the proposed deal goes ahead, Alexander Forbes' listings on the Johannesburg, Namibia and Botswana stock exchanges will be terminated.

In addition, it is intended that management and staff of Alexander Forbes, as well as two black economic empowerment entities, would collectively own at least 30% of the equity in the company.

Alexander Forbes was ranked the world's ninth largest broker in Business Insurance's global broker ranking last year.