The CoreShares acquisition and what it means for you
We invite all our investors and stakeholders to watch this short video message from Tobie van Heerden (CEO, 10X) and Gareth Stobie (MD, CoreShares) or read their letter below:
The CoreShares board, our executive team and staff are delighted to announce a transaction with 10X Investments which would see the coming together of 10X Investments and CoreShares.
The current CoreShares shareholders have agreed to a 100% cash offer from 10X Investments in a merger that would create an independent, full-service, indexing and rules-based investment specialist with more than R31billion in assets under management. The deal is subject to approval by the FSCA.
10X is already well-known as a challenger brand and consumer champion for its retirement savings products which all have an index and rules-based investment underpin. This offering ties in well with Coreshares’ complementary building block offerings, including ETFs, segregated accounts and smart beta offerings.
Accordingly, our clients will benefit from the additional scale, expertise and capacity offered by the combined entity. Indeed, scale is critical to being competitive in rules-based investing and we anticipate that in the next few years a small number of players in South Africa will have sufficient scale to be successful and bring down costs for South African investors.
The transaction comes at an exciting time for 10X. The company has embarked on a strategy reset which includes not only a new, highly experienced executive team, led by Tobie Van Heerden (CEO) and Anton Eser (CIO), but also a fresh focus on the broader market and various distribution channels, and an inclusive approach to industry stakeholders, including financial advisors.
10X’s strong direct-to-consumer offering will complement CoreShares’ intermediated offerings. The enlarged business will remain focused and client centric.
The CoreShares team will be joining 10X, adding breadth and depth to their team and ensuring continuity for CoreShares’ clients.
We would like to take this opportunity to sincerely thank our original funders for their support, vision and guidance in bringing the company to this point of its journey.
Thank you for your continued support as we embark on this exciting new chapter of our journey. We are at your disposal should you have any questions or concerns.
Tobie Van Heerden