Detailing the deal, Investec said the merged entity will trade as Investec Asset Management Namibia and, combined with the group's operations in South Africa and Botswana, makes Investec Asset Management the largest manager of third party assets in Southern Africa.

Prior to the merger, Pamue held 51% of FedNam, while Investec Asset Management Holdings in South Africa held 49%, as a result of the Investec Group's acquisition of Fedsure in 2000. During this period the investment management business of FedNam had been outsourced to Investec Asset Management Namibia.

According to Tebogo Naledi, director of Investec Asset Management's Africa division, the merger of FedNam and Investec Asset Management Namibia significantly simplifies the shareholding structure and creates a more focused business.

The transaction is structured as a phased acquisition by Pamue of 49% of the equity in Investec Asset Management Namibia.

According to Naledi, the deal completes the 'Namibianisation' of Investec Asset Management Namibia and cements Investec's commitment to Namibia.

"We now have a Namibian equity partner and our office is entirely staffed by Namibians," Naledi observed.

"Along with initiatives such as our trustee education programme and various corporate social investment programmes, this deal confirms Investec's commitment to building a successful and sustainable business in Namibia, while contributing to the development and success of the country.

"The partnership also illustrates the commitment of Investec Asset Management in building operations throughout the world that are in tune with the environment in which we operate," Naledi added.

According to Issy Namaseb, Managing Director of Pamue Investment Corporation and Chairman of FedNam, the deal with Investec Asset Management will position Pamue as a significant player in Namibia's evolving financial services sector.

"It provides the necessary platform from which we can grow and consolidate our services to target clients, as well as identify specific areas where we could make increased contributions to the process of socio-economic advancement in the country.

"This is a business imperative and forms part of Pamue's value proposition as a Black Economic Empowerment company," he said.

As a result of the merger, Investec Asset Management Namibia has N$3.4-billion in assets under management and offers institutional investment management products and solutions to a number of Namibian retirement funds, as well as two Namibian registered unit trusts, the Investec Namibia Managed Fund and the Investec Namibia High Income Fund.

Investec Asset Management South Africa will continue to provide the technical and management expertise required in operating Investec Asset Management Namibia, while Pamue will provide strategic input with a focus on growing the business.