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Sanlam to increase interest in SAHAM Assurance S.A.

03 May 2021 Sanlam

Sanlam today announced that its subsidiary, SAN JV (RF) Proprietary Limited (SAN JV), will increase its direct and indirect stake in SAHAM Assurance S.A. (SAHAM Assurance Maroc), a leading property and casualty insurer in Morocco.

SAN JV will increase its stake to 84.5% by acquiring 22.8% of the issued shares of SAHAM Assurance Maroc from Mr Said Alj and two entities related to him, Sanam Holdings S.A. (Sanam) and First Commercial Estate Company S.A.R.L., for a total consideration of MAD1,241 million which will be funded by Sanlam using debt facilities (the transaction).

The transaction is subject to certain conditions including (but not limited to) approvals from the relevant regulatory authorities to the extent required both in South Africa and Morocco.

SAHAM Assurance Maroc is 61.7% owned by Sanlam Emerging Markets (SEM) and has been listed on the Casablanca Stock Exchange since 2010.

Sanlam sees several strategic benefits from the proposed transaction including:

• Enabling the Sanlam Group to deepen its direct presence in North and Francophone West Africa as part of Sanlam’s strategy to optimise the Pan-Africa portfolio and strengthen its position in core markets;
• Enabling Sanlam to explore broad partnerships in the long-term that will further support growth in the region; and
• Transitioning and elevating the successful partnership with our Moroccan Partners, Mr Alj and Sanam, to the Sanlam Group level without departing from the business model of partnering in-country with strategic partners throughout the Sanlam Group.

Santam, the co-investor alongside Sanlam in SAN JV, is supportive of the transaction and will confirm the extent of its participation following its board meeting in September. The transaction is, however, not conditional upon this decision.

As part of the transaction, the Sellers have undertaken to reinvest fifty percent of the total consideration to acquire shares in Sanlam on the open market at the prevailing share price over the next few months which will be held for a minimum period of two years.

Sanam, chaired and represented by Mr Alj will continue to provide the Sanlam Group with strategic, economic and commercial advice on matters related to its activities in Morocco for a period in the years to come, ensuring that the Sanlam Group continues to reap the benefit of Sanam and Mr Alj’s experience and knowledge of the Moroccan market.

SEM CEO, Mr Heinie Werth said: “This transaction further enhances our long-standing commitment to the Moroccan market. We look forward to deepening our presence and to continue delivering excellent service and value to our clients and stakeholders.”

“Morocco and the broader North and West Africa regions remain key markets for Sanlam and this proposed transaction is in line with our African diversity strategy,” Mr Werth concluded.

Mr Said Alj said: “Sanam Holdings has proudly partnered with the Sanlam Group in Morocco over the last few years and we are excited by the prospect of broadening and elevating this partnership to the Sanlam Group level. We are confident in Sanlam’s ability to act as the main custodian of Saham Assurance Maroc and look forward to benefiting from Sanlam’s future plans to enhance the prospects of the company and the region”.

The effective date the transaction is expected by the end of the third quarter of 2021, subject to the fulfilment of the conditions.

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