Reinet confirms Lehman deal

Reinet has confirmed its offer to purchase the assets of Lehman Brothers. Its an intriguing deal from a South African perspective in that a major SA investment player has displayed enough confidence to go ahead with an international deal...

The press release reads:

Reinet Investments S.C.A. announces that its wholly-owned subsidiary Reinet Fund S.C.A. F.I.S. (together "Reinet") and the management team of Lehman Brothers Merchant Banking ('LBMB') have entered into an agreement with the Lehman Brothers bankruptcy estate for the purchase of certain parts of the business of LBMB with respect to the management of two private equity funds currently known as Lehman Brothers Merchant Banking Partners IV LP and Lehman Brothers Merchant Banking Partners IV (Europe) LP (together the 'Funds').

The transaction is subject to various regulatory approvals, as well as the approval of the limited partners of each of the Funds.

As part of the proposed transaction, Reinet will commit up to $230 million to both existing and new investments in the Funds over the remaining three and a half year investment period. Reinet will also participate in the consideration of all future investments by the Funds. As indicated on 12 January 2009, the transaction is expected to have no material impact on the net asset value of Reinet.

About Lehman Brothers Merchant Banking
LBMB manages funds that seek significant long-term capital appreciation through direct investments in established operating companies in partnership with management. The funds invest in companies with sound business fundamentals, proven operating teams and a compelling business strategy. Since 1986, LBMB has raised and managed four institutional funds and several
employee investment vehicles, with total committed capital in excess of $8.0 billion.

To date, the Funds have made investments of some $ 800 million in aggregate. Further commitments by limited partners to invest in the funds currently amount to some $1.7 billion.