Ramaphosa announces divestment of his R7bn-plus Shanduka stake

cyril ramaphosa

South Africa’s deputy president Cyril Ramaphosa has announced that he is to sell his entire stake in Shanduka, a company worth well north of R20bn. The former trade unionist who, in 1982, became the first General Secretary of the National Union of Mineworkers,  started Shanduka in 2001. In the past dozen years during which he ran it as executive chairman, Shanduka has built up hugely valuable businesses in coal, gold, platinum, energy and packaging; is the development licensee of McDonalds SA; owns 70% of one of SA’s four Coca Cola bottlers; and holds substantial stakes in MTN Nigeria (worth R4bn); Lonmin (R2.5bn); Standard Bank (R2.3bn); Alexander Forbes (7.5%); Scaw Metals (5%); Macsteel (7.5%); Liberty Life (2%); Bidvest and Mondi. Shanduka started producing annual reports in 2012 and although it provides details of its holdings, there is no balance sheet or income statement so estimates of Ramaphosa’s value remains just that. His Tshivhase Trust, with 30%, is the biggest shareholder in Shanduka. Forbes used that as a benchmark to put his wealth at R7bn, but on a see-through basis that looks highly conservative. Significantly given the important role he will be playing in the BRICS-aligned Government, his biggest partner in Shanduka is the China Investment Corporation which owns 26%, while Standard Bank is a 13% shareholder.  Until recently, Ramaphosa served as the chairman of Bidvest, Mondi Plc and MTN; and was on the directorate of Standard Bank, Alexander Forbes and Lonmin. – AH  

Statement by SA’s Deputy President Cyril Ramaphosa:

I, Deputy President Cyril Ramaphosa, on Monday announced a transaction that will result in my divestment from Shanduka Group.

Shanduka’s majority shareholders have entered into an agreement that will, among other things, result in my complete divestment from the Group. In the interim, my family’s interests will be held in blind trusts.

Over the course of the last 17 months, I have stepped down from the boards of several companies on which I served and resigned as Shanduka Group executive chairman.

This is the culmination of a review of my business interests that I initiated soon after my election as ANC Deputy President in December 2012. It was intended to remove the potential for any conflict of interest and enable me to effectively perform the functions of my position.

In the course of the next few weeks, I will take any further practical steps necessary to ensure that I comply with requirements of the Executive Ethics Code and uphold the integrity of my office.

I will continue to be involved in the Shanduka Foundation, a non-profit organisation that works in the areas of school development, skills development and enterprise development.

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