JOHANNESBURG (miningweekly.com) – Newly elected Deputy President of the Republic of South Africa Cyril Ramaphosa has cut his mining and business ties further with the creation of the new R13.5-billion black-controlled natural resources and industrial holding group, Pembani, to be chaired by former MTN CEO Phuthuma Nhleko.

The majority shareholders in Shanduka, comprising Ramaphosa’s family trust, Jadeite Limited and Standard Bank, said on Monday that agreement had been reached to combine their interests in Pembani, which holds investments in Engen, BHP Billiton Energy Coal South Africa, Exxaro and AfriSam.

The proposed transaction will enable Ramaphosa to exit his business interest in Shanduka and ensure that his family’s business interests do not conflict with his State functions or fall within the ambit of any State-regulated sectors.

Pembani’s R13.5-billion asset value gives it the scale and liquidity to pursue potentially value-creating opportunities in sub-Saharan Africa.

Ramaphosa has taken steps to extricate himself from business since being elected ANC Deputy President in December 2012.

In this, the last of the transactions, he is able to eliminate any conflicts of interest with the confidence that Pembani will uphold Shanduka’s founding vision of value creation, empowerment and transformation.

Ramaphosa founded Shanduka 2001 as a black-owned investment holding company, which invested in a diverse portfolio of listed and unlisted companies, with key holdings in mining, the food and beverage industry, financial services, energy, telecommunications, property and industrial sectors in South Africa, Mozambique, Mauritius, Ghana and Nigeria.

Jadeite, a wholly owned subsidiary of CIC International, is controlled by China Investment Corporation.

Nhleko said the proposed transaction was creating an African champion that would benefit from a strong capital base capable of continuing to build on the individual platforms created by Shanduka and Pembani in the past.

The shared long-term vision and investment sector focus of the two entities made the fit “a very logical one”, Nhleko, one-time member of the board of diversified mining major Anglo American, commented.

The transaction, which is subject regulatory approvals and consents of various third parties, is expected to be consummated before the end of the year.