MMI consolidates Namibian operations
MMI Holdings Limited (MMI), the South African listed financial services company, announced today the consolidation of its Namibian operations through the acquisition of the remaining 51% of Momentum Life Assurance Namibia Limited (Momentum Namibia) from F
MMI, born from the merger of Momentum Group and Metropolitan Holdings, held 49% of Momentum Namibia through Momentum Group and holds 77% of Metropolitan Life Namibia (Metropolitan Namibia). MMI will consolidate Momentum Namibia into Metropolitan Namibia, housed under Metropolitan International, a division of MMI.
MMI Group CEO Nicolaas Kruger says, ‘This acquisition is an important milestone in the integration process of MMI’s Namibian operations. Momentum Namibia and Metropolitan Namibia both have an equally strong presence and together they have the potential to be a financial services leader in Namibia. The transaction also represents an important building block to enhance MMI’s strategic focus on Africa.
MMI will inject N$350 million (R350 million) into its Namibian operations to finance this acquisition, which also includes the consolidation of Momentum Namibia’s asset management and property companies into Metropolitan Namibia. Once the transaction is concluded, Metropolitan Namibia (including Momentum Namibia) will have an embedded value of approximately N$1.3 billion (R1.3 billion).
Mervyn Cookson, CEO of Metropolitan International says ‘We are very excited about the growth opportunities in Namibia and this transaction creates the perfect platform for us to grow our presence even further’.
Momentum Namibia has a nine year business relationship with FNB Namibia, providing life insurance products to FNB Namibia banking clients. Cookson says, ‘We want to strengthen and grow this banc-assurance relationship into the future and we will also continue to make use of the well known Momentum, Swabou and Metropolitan brands in the Namibian client space.’
Metropolitan Namibia recently renewed their black economic empowerment (BEE) transaction with Namibian BEE partners, Pinnacle Business Investments Limited (Pinnacle). Currently the company has a 79% Namibian shareholding with Pinnacle holding 21%. ‘Our presence in Namibia is a long-term one and economic development and sustainable growth are strategically important to the economic and social relevance of our business,’ concludes Cookson.
The acquisition of 51% shareholding in Momentum Namibia has been approved by the Namibian authorities and will be effective from 1 July 2012.
