An arms dealer and an IT billionaire have bought into the ailing Lions rugby union.

IT tycoon Robert Gumede and arms broker Ivor Ichikowitz, both prominent ANC funders, have bought a 49.9% stake in the Golden Lions Rugby Union. The deal was announced with fanfare at Johannesburg's Ellis Park yesterday.

Details are secret, but The Times has learned that the investment could amount to R80-million.

This would make the Lions South African rugby's equivalent of Chelsea and Manchester City in English football. Chelsea are owned by a Russian oligarch and Manchester City were recently bought by an Arabian prince.

The deal took the rugby fraternity by surprise yesterday.

Neither man is well-known in rugby circles.

But their investment is expected to help sustain the recent improvement of the Lions, who won no trophies in more than 10 years.

Ichikowitz, 43, is chairman of Transafrica Capital and the Paramount Group, which describes itself as dealing in peacekeeping, defence and internal security.

The South African correspondent of Jane's Defence Weekly, Helmoed Römer Heitman, said he believed Ichikowitz recently brokered a deal to sell six South African surplus Mirage F1 AZ jet fighters to Gabon.

He also reportedly helped facilitate arms deals in other African countries, and was believed to have an Azerbaijan factory making mine-protected vehicles.

Ichikowitz's company recently introduced a six-wheeled infantry fighting vehicle, the Mbombe.

He is politically well connected and part of President Jacob Zuma's inner circle.

Ichikowitz made his fortune selling surplus South African armoured vehicles in the Middle East and Africa. He was involved with the Gilbert rugby ball and clothing company, which is used by some South African provincial rugby teams.

Gumede is executive chairman of empowerment company Guma Group. He is also founder of South Africa's second-largest IT company, GijimaAST, now embroiled in a dispute with the Department of Home Affairs over a multimillion-rand software program.

Lions president Kevin de Klerk refused to give a figure for the deal, saying only that it was "massive". De Klerk recently admitted that the Lions were seriously considering a move to the 94000-seat FNB Stadium. This investment would be in line with a strategy of breaking into new markets.

The new investors are keen to popularise the game among black supporters.

"Our aim is to drive this team in every respect," Gumede said, "so that we develop the franchise at all levels, from the junior ranks to the Super Rugby team.

"We want the Lions leading the pack, taking it to its next level and contributing to the Springboks."