UPDATE 1-S.Africa's Alex Forbes to list, sell stake to Marsh & McLennan

Mon Jun 23, 2014 8:28am EDT

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JOHANNESBURG, June 23 (Reuters) - South African pension fund administrator Alexander Forbes will return to the Johannesburg bourse next month, it said on Monday, six years after a $1.2 billion buyout by a group of private equity firms.

Alexander Forbes, whose nearly 30 percent stake remained listed for some shareholders who wished to stay invested following the 2007 takeover, said it would float on July 24.

The offer, which would not be open to the public, will comprise an issue of new shares and the sale of existing shares by exiting investors.

It did not give details on how many shares would be sold and at what price.

The Johannesburg-based company also said it would sell a 34 percent stake to world's top insurance broker Marsh & McLennan after the listing.

Founded more than 75 years ago, Alexander Forbes was delisted in 2007 as part of a leveraged buyout by a group of investors led by Britain's private equity firm Actis Capital LLP.

Some Alexander Forbes shares remained listed on the domestic bourse through a special purpose entity called Alexander Forbes Preference Share Investments Ltd to house the investments of some shareholders who did not want to sell.

Alexander Forbes Preference Share Investments, whose investors include fund managers Allan Gray, Stanlib and Coronation, owns 28.4 percent of Alexander Forbes.

Alexander Forbes's Chief Financial Officer Deon Viljoen said the stake held by the special purpose entity was most likely going to be spun off to existing shareholders of the entity.

Shares in Alexander Forbes Preference Share Investments fell 4.2 percent to 9.10 rand by 1143 GMT, valuing the business at about 3 billion rand.

Deutsche Bank, Morgan Stanley and FirstRand's Rand Merchant Bank are arranging the listing and the sale of shares. (Reporting by Tiisetso Motsoeneng; Editing by Louise Heavens)

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