Sanlam is pleased to announce that it has reached an agreement to acquire a 28.7% stake in the issued share capital of Afrocentric Healthcare Assets (Proprietary) Limited, a wholly-owned subsidiary of Afrocentric Investment Corporation Limited (AfroCentric). The transaction is subject to certain conditions precedent.
This transaction will result in Sanlam holding an effective 27% in Medscheme, South Africa’s largest health risk management services provider and the country’s third largest medical scheme administrator whose clients include Bonitas, Fedhealth and the Government Employees Medical Scheme (GEMS).
Sanlam is currently a medical aid administrator for two closed schemes, CAMAF and Malcor, which have a combined total of approximately 30 000 principal members.
Sanlam and AfroCentric will leverage their combined expertise to pursue further opportunities in the administration and managed healthcare business in both South Africa and the rest of Africa.
Says Sanlam Group Chief Executive, Dr Johan van Zyl: “This is a good investment opportunity for Sanlam as Medscheme has the necessary scale and management expertise to bring a medical aid solution to our clients. We look forward to a long and mutually beneficial partnership with AfroCentric.”
Says Dr Anna Mokgokong, chairperson of AfroCentric Group: “This transaction gives us access to Sanlam’s extensive local and global distribution network and suite of financial products, thereby enhancing our value proposition to all our stakeholders. In addition, the transaction provides us with an opportunity to significantly expand our capital base and positively positions the Afrocentric Group for accelerated growth.”
The transaction is expected to be concluded in March 2015.
Get the latest issue of FAnews