Sanlam, a South African financial services group, has agreed to buy remaining 53.37% stake in Saham Group’s insurance subsidiary for $1.05bn.
With the latest share purchase, Sanlam will raise its holding in Saham Finances to 100% from existing 46.6%. In 2016, Sanlam, along with subsidiary Santam, purchased a 30% stake in Saham. Further, they acquired an additional 16.6% stake in Saham in 2017.
Commenting on the deal, Sanlam Group CEO Ian Kirk said: “We welcome this opportunity to strengthen our investment in the Kingdom of Morocco, a major African gateway and a country which enjoys institutional and macro-economic stability.
“Our investments alongside SAHAM Group reflect a mutually beneficial intra-African partnership, and we hope to work together on other major projects in the future.”
Santam has supported the deal, which will allow it to play an important role in the specialist and reinsurance businesses of Saham Finances.
If the proposed transaction materialises, it will give Sanlam greater access to Saham’s insurance business which operates in 26 countries through 35 insurance firms.
Upon completion of transaction, the Sanlam Group is expected to emerge as a Pan-African insurance, investment and ancillary services group.
Sanlam Group will fund the transaction using an amalgamation of available discretionary capital, debt facilities and the issuance of equity instruments.