JOHANNESBURG, Jan 12 (Reuters) - South Africa's Reinet Investments confirmed on Monday it is in talks about participating in the buy-out of Lehman Brothers Inc's merchant banking business.
Reinet said it was in talks with the Lehman bankruptcy estate and investors in the funds managed by the merchant banking division. No formal agreement had been made and a further announcement would be made in due course.
A source familiar with the situation said on Thursday Lehman Brothers had reached an agreement in principle to sell its merchant banking business, made up of two private equity funds, to management of the funds.
The business to be spun out would also take in new investment from South African billionaire Johann Rupert, the source said.
Reinet was created last year when Richemont, controlled by the Rupert family, was structured and its stake in British American Tobacco was spun off.
(Reporting by Rebecca Harrison) (For full Reuters Africa coverage and to have your say on the top issues, visit: http://africa.reuters.com) (rebecca.harrison@thomsonreuters.com; +27 11 775 3160; Reuters Messaging: rebecca.harrison.reuters.com@reuters.net) COPYRIGHT Copyright Thomson Reuters 2009. All rights reserved. The copying, republication or redistribution of Reuters News Content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Reuters.
Reinet said it was in talks with the Lehman bankruptcy estate and investors in the funds managed by the merchant banking division. No formal agreement had been made and a further announcement would be made in due course.
A source familiar with the situation said on Thursday Lehman Brothers had reached an agreement in principle to sell its merchant banking business, made up of two private equity funds, to management of the funds.
The business to be spun out would also take in new investment from South African billionaire Johann Rupert, the source said.
Reinet was created last year when Richemont, controlled by the Rupert family, was structured and its stake in British American Tobacco was spun off.
(Reporting by Rebecca Harrison) (For full Reuters Africa coverage and to have your say on the top issues, visit: http://africa.reuters.com) (rebecca.harrison@thomsonreuters.com; +27 11 775 3160; Reuters Messaging: rebecca.harrison.reuters.com@reuters.net) COPYRIGHT Copyright Thomson Reuters 2009. All rights reserved. The copying, republication or redistribution of Reuters News Content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Reuters.
© 2009 AFX News
