London, January 4:

Julian Treger, the activist investor known for causing a number of boardroom bust-ups in the City of London, has emerged as a key player in an investment vehicle seeking to finance black economic empowerment in his native South Africa.

Treger wants to use a shell company listed on Aim, London’s junior market, to invest in companies in South Africa which under local rules are required to boost their black ownership.

“There is a real shortage of equity in South Africa. No foreign entities have been backing black economic empowerment,” said Treger, who is based in London but currently in South Africa.

The shell company, Illuminator, is asking its investors for permission to change its investment strategy, which was originally to look for opportunities in European industrial business services. It would change its name to Blackstar Investors and relocate to Luxembourg for tax purposes, which means that its shareholders would no longer be governed by the City of London code on takeovers. It is also hoping to complete a share placing. Its shares are suspended at present.

Blackstar would take minority stakes in special purpose vehicles set up to further black economic empowerment, the programme to try to include black South Africans in the economy.

Treger, who while running the Active Value fund management group targeted well-known names such as Liberty and Pilkington, said he did not expect to use an ‘activist’ approach in South Africa. With his former partner Brian Myerson Treger became known for an aggressive investment style, pushing for change at companies.

Not all their efforts were successful: they lost 30 million pounds trying to stop advertising group WPP taking over Cordiant.