Religare Capital Markets buys majority stake in Noah to boost South Africa capability

Religare Capital Markets Limited (RCML), the investment banking and institutional securities arm of leading emerging markets financial services group, Religare Enterprises Limited, yesterday announced the significant expansion of its South African capability through the acquisition of a controlling stake in local broker Noah Financial Innovation Pty Ltd (“Noah”).

Noah is an established player in the South African market, offering tailored execution and independent research to the institutional investment community. The acquisition boosts RCML’s existing trading, sales trading and research capability in South Africa, adding some 20 professionals to the team as well as an innovative network of sector specialists who provide content and research services. This move accelerates RCML’s push into one of the world’s major emerging markets.

In 2010 RCML acquired BJM UK and US, both highly-rated distribution platforms for South African equities in London and New York. RCML has since added research analysts who cover the South African banking, telecoms, media and mining sectors. South Africa is one of the markets RCML has identified as of key strategic importance and the Noah acquisition complements the existing team by providing a meaningful local presence.

Commenting on the acquisition Martin Newson, CEO, RCML said, “South Africa is now the fifth member of the BRICS and it is no coincidence that RCML sees it as an integral part of our emerging markets investment banking platform, both in its own right and as a beachhead for our wider Africa banking ambitions. Combined with our successful acquisition of BJM’s international operations in 2010 and subsequent hires, today’s news means we’re now well positioned to connect domestic and global investors to the South African opportunity whilst leveraging on our strengths within global emerging markets.”

RCML is now present in nine countries and has more than 300 staff, including investment bankers, analysts and sales and trading teams situated in London, New York and across emerging markets.

In late 2010, RCML acquired a 50% stake in Bartleet Mallory Stockbrokers (Pvt) Ltd. (BMSBL), a pioneering member of Colombo Stock Exchange. BMSBL has played a pivotal role in the capital market development and is well positioned to capitalize on the potential opportunities in the capital market industry on the back of strong domestic and global presence. RCML’s entry to South Africa would further strengthen the global distribution capabilities of its Sri Lankan operations.  

Bartleet Religare Securities (Formerly Bartleet Mallory Stockbrokers) caters to both local and foreign investors and facilitates trades on equity and debt which are listed on the Colombo Stock Exchange. In order to meet its core objective and to hold a competitive position in the stock broking industry of Sri Lanka Bartleet Religare Securities offers value added services via research, on line trading and margin facilities to its clientele. With a staff strength of approximately 100 and a state-of-the-art head office situated in the heart of the Capital City coupled with a wide spread presence across the country viz Matara, Kandy, Jaffna, Negombo, Dehiwala, Kiribathgoda and Bandarawella through a state-of-the-art Branch Network, Bartleet Religare Securities is well positioned to meet the capital market investment needs of the people in Sri Lanka.