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Sanlam unveils new multi-billion BEE deal

BUSINESS LIVE / 31 OCTOBER 2018 - 09:38 /ANDRIES MAHLANGU

The financial services company will sell 5% of its issued shares to new and existing BBBEE shareholders

Sanlam has unveiled a multi-billion rand two-pronged broad-based BEE (BBBEE) transaction, which the financial services group says will broaden the base of beneficiaries.

Picture: SUPPLIED

Sanlam will sell 5% of its issued shares to new and existing BBBEE shareholders in a proposed deal that is worth between R7.4bn and R8.6bn.

The targeted new beneficiaries include: Sanlam employees; professional black women; rural and urban poor black women groups; black youth; black business partners; and broad-based black groups.

Sanlam said on Wednesday that it would create what it calls a master trust to cater to 80% of the intended beneficiaries. The existing anchor empowerment shareholder, Ubuntu-Botho, will benefit from the remaining 20%.

Ubuntu-Botho will take the lead and control of the process of selecting the participants and beneficiaries of the beneficiary trusts.

Sanlam will also propose empowerment participants and beneficiaries for Ubuntu-Botho’s consideration.

The subscription for shares will be determined at a 10% discount to a Sanlam share price within a range of R74 and R86.

In a separate transaction, Sanlam said it would grant Ubuntu-Botho R2bn to invest in certain entities of the mother group as part of the empowerment at the operational level.

Sanlam shares were up 1.85% to R73.23 in early trade on the JSE, valuing the company at R163.8bn

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LINK : https://www.businesslive.co.za/bd/companies/financial-services/2018-10-31-sanlam-unveils-new-multi-billion-bee-deal/

Disclaimer - The views expressed here are not necessarily those of the BEE CHAMBER

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