Sanlam completes R5.7bn equity placing

28 March 2018 Sanlam

The Sanlam Group is pleased to announce that it has completed the cash placing of 65.5m new ordinary shares (placing shares) in the company with institutional investors at a price of R87 per placing share to raise R5.7 billion.

The placing was conducted via an accelerated book-building process. The listing and trading of the placing shares on the Johannesburg Stock Exchange (JSE), operated by the JSE Limited, is expected to commence on Tuesday, 3 April 2018, subject to approval by the JSE.

In addition, and subject to approval by the Namibian Stock Exchange (NSX), the placing shares will also be listed on the NSX.

The net proceeds from the placing will be utilised partly to fund the Group’s acquisition of the remaining 53.37% shareholding in SAHAM Fina nces (SAHAM) announced earlier this month. The transaction is subject to the fulfilment of a number of conditions precedent, including various regulatory approvals, and is expected to conclude in the third quarter of 2018.

Said Sanlam Group Chief Executive Officer, Mr Ian Kirk: “The success of this placing indicates the significant investor confidence in Sanlam following a long period of consistent delivery on our strategic priorities and is evidence of the renewed confidence in South Africa as well. We believe our investment in SAHAM, once completed, will add value to all our stakeholders and it is a critical milestone in our centenary year as we look to sustain our growth and performance in the years ahead.”

SAHAM is the largest insurer in Africa outside South Africa and is the market leader in most of the 26 countries in which it operates in North, West and East Africa. The company owns 58.48% of SAHAM Assurance Morocco, which is listed on the Casablanca Stock Exchange.

Mr Kirk added that the acquisition of 100% of SAHAM would enable Sanlam to have an even more meaningful presence across sub-Saharan and North Africa, in line with the Group’s strategy. Given the expanded footprint, Sanlam is set to be the ‘go to’ financial services provider for multinationals, brokers, banks, other distribution entities as well as a preferred network of partners for international insurers with no African footprint. This aspiration is on top of our plan to have the leading life and general insurance business in each country in our network of 34 countries across the African continent.

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