13 September 2006

Two major property services groups, Gensec and JHI, are to merge with effect from 1st January 2007.   The new company, which is to be called JHI, will represent a full range of property services combining the best of both companies.

"We expect dynamic growth as we increase our client base, offer a wider spread of services and improve on cross-selling in the course of establishing ourselves as the industry leader" says Marna van der Walt, CEO of Gensec.

Les Weil, Chairman of JHI, said that "the merger provides the opportunity to reinforce the power of the 105-year old JHI brand which is instantly recognisable in South Africa and further a field.

He added that "the merger will increase our geographical footprint and result in more diversified revenue streams deriving from the activities of both companies".

 "Given the prospects for property in South Africa, this is an opportunity to establish ourselves as a powerhouse and industry leader in our field as well as in the various parts of Africa and Middle East in which we operate, bringing to the market commercial and residential developments backed by decades of experience".

Van der Walt noted, "The merged company will have just under R20 billion of assets under management making it a serious contender for the top position in the industry".

Bongani Khumalo, MD of JHI, said that "the new JHI will prioritise investment in people development as it has done through many decades of its existence". JHI will be a 51% black owned company and will focus on achieving meaningful participation through its empowerment initiatives not only in equity, but also in skills development and procurement. Khumalo added that "The transformation value of the new JHI lies in the synergy derived from the core competencies and capabilities of merging these property service leaders.

Weil noted, "The intellectual capacity derived from harnessing the skills of the people will come together in the merged company and create outstanding opportunities for all stakeholders".

The merger document, which has been signed, is subject to a number of suspensive conditions including Competition Commission notification.
Following implementation of the merger, Les Weil will become non-executive chairman from July 2007, devoting 30% of his time to the company. Bongani Aug. Khumalo will become the non-executive deputy chairman and Marna van der Walt will be appointed CEO on the effective date.