Investec Bank Ltd (Investec) has acquired Leo Baxter’s 45% stake in the MB Technologies Group (MBT) for an undisclosed sum with the transaction being effective from July 2010.

Royal Bafokeng Holdings (“RBH”) remains MBT’s controlling shareholder with its shareholding at 55%. Investec will have board representation proportional to its newly acquired 45% interest. Lucas Ndala, currently chief financial officer of RBH and currently a non executive director of MBT, has been appointed as the group’s non-executive chairman.

Despite a severe spinal cord injury sustained in May 2007 Baxter remained on the MBT Board as the group’s non executive chairman. He has been undergoing significant medical rehabilitation which has resulted in him gaining movement in both his arms.

Baxter is now focusing on the next step of his recovery and will be embarking on a series of ground breaking spinal cord operations abroad that are critical to his quest to overcome his paralysis. Prior to undergoing this series of operations, Baxter, RHB and MBT wished to secure a suitable partner to acquire Baxter’s MBT shareholding and to further strengthen and compliment the MBT institutional investor base.

 Baxter retains a limited economic interest post the transaction through a profit participation agreement. MBT will continue to benefit from Baxter’s knowledge of the IT industry as both RBH and Investec have requested that he remain on the board of directors in a non executive capacity.

Says Glenn Fullerton, CEO of MB Technologies “We welcome Investec as a shareholder and believe that their presence on our board of directors will add strategic value and strengthen our long-term growth strategy.”
ENDS