Mar 10 2009

It’s back to school for ‘old idiot’ Rupert

Published by at 11:27 am under Companies,More News

According to the Financial Times the buy-out of Lehman Brothers Merchant Banking Partners (LBMB) by senior managers and SA industrialist Johann Rupert, edged closer this week.

Apart from the detail of the upcoming deal (Rupert will get 49% and the management team the rest of the new entity etc.), the FT article contained a few interesting Rupert quotes. Such as this one:

Mr Rupert told the Financial Times his investment was part of a strategy to diversify his holdings away from his Richemont luxury goods empire and to acquire assets that can “preserve capital” against inflation.

“I’m going to need to learn about merchant banking again and they are going to have to learn to have some old idiot like me who actually asks what they are doing,” said Mr Rupert (58), who worked for Lazard in New York in the 1970s.

O, how nice it must be to be able to “buy now, learn later”.

One response so far

One Response to “It’s back to school for ‘old idiot’ Rupert”

  1. adminon 10 Mar 2009 at 3:12 pm

    A press statement announcing the approval of the proposed joint venture between the management team and Reinet Investments has now been published on the Reinet site.

    Here an extract: “Reinet will initially invest up to $10 million in a joint-venture with the current management team and other investors in respect of the Funds’ management company.

    “In addition, Reinet will assume the managing partner’s commitments to invest up to $230 million in new investments to be made over the remaining lives of the Funds.

    “The transaction is expected to close within 30 days.”

    No mention was made of the 49:51 break of ownership between Reinet and the management team, however. So, I wonder whether that is still correct…

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