Sanlam to increase stake in SAHAM

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Sanlam to increase stake in SAHAM

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Published Date: 2021-05-04 | Source: Stephen Gunnion | Author: Stephen Gunnion

Sanlam to increase stake in SAHAM

The insurance group says increasing its stake will enable it to explore broad partnerships to support growth in North and francophone West Africa.

Sanlam plans to buy an additional 22.8% stake in SAHAM Assurance Maroc as it grows its African operations outside SA. The additional interest will take its direct and indirect shareholding in the pan-African company to 84.5%.

Sanlam said its SAN joint venture business was buying the additional shares from Said Alj for R1.98-billion and would fund the purchase using debt facilities. SAHAM is a leading property and casualty (short term) insurer in Morocco and has been listed on the Casablanca Stock Exchange since 2010.

Apart from deepening its presence in North and francophone West Africa, Sanlam said increasing its stake would enable it to explore broad partnerships in the long term that would support growth in the region.

Sanlam said short-term insurance subsidiary Santam, which is a co-investor in the SAN joint venture, supported the deal and would confirm the extent of its participation following its board meeting in September. However, it said the transaction was not conditional on its decision.

As part of the transaction, Sanlam said the sellers had irrevocably undertaken to reinvest 50% of the proceeds from the sale to buy shares in Sanlam on the open market at the prevailing share price. The shares would be acquired over the next few months and would be held for a minimum period of two years.

Sanlam said the deal was subject to certain conditions including the approval of the relevant regulators in SA and Morocco.

Its shares closed 1.2% down at R55.35 yesterday while Santam rose 1.1% to R259.19.





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