• BEE News

Sanlam outlines asset management deal with billionaire Motsepe’s firm

MONEYWEB / 20 AUGUST 2020 - 09.20 / EMMA RUMNEY - REUTERS

‘This transaction takes Sanlam a step further on the journey to becoming South Africa’s leading asset manager,’ CEO Paul Hanratty said.

Patrice Motsepe’s financial services firm and Sanlam have signed a deal that will create one of the largest Black-empowered asset management companies in the country, the insurer said on Thursday.

Sanlam said plans for the deal were first flagged in 2018 when it announced a series of actions towards Black-economic empowerment, a government policy that encourages companies to meet quotas on Black ownership, employment and procurement to reverse decades of racial exclusion under apartheid.

Sanlam said the deal would unlock substantial value for shareholders by improving competitiveness and creating new opportunities for growth.

“This transaction takes Sanlam a step further on the journey to becoming South Africa’s leading asset manager,” CEO Paul Hanratty said.

The deal will see African Rainbow Capital Financial Services (ARCFS), part of Motsepe’s Ubuntu-Botho Investments group, take a 25% interest in Sanlam’s South African third-party asset management business, which following a reorganisation will include South African index-tracking business Satrix.

ARCFS will purchase shares in a new holding company housing the business, with the current purchase price currently seen at R815.2 million ($47 million), a 25% discount.

The transaction is expected to close in December.

-------

LINK : https://www.moneyweb.co.za/news/companies-and-deals/sanlam-outlines-asset-management-deal-with-billionaire-motsepes-firm/

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

18 views

© 2019 BEE Chamber (PTY) Ltd, All Rights Reserved