Africa News - South African insurers to acquire 30% stake in Morocco-based Saham
Source: Middle East Insurance Review | Jan 2016
South Africa’s largest insurer Sanlam and its short-term insurance subsidiary Santam have reached an agreement to jointly acquire a 30% stake in Morocco-based Saham Finances for a purchase consideration of US$375 million.
Sanlam and Santam will acquire 30% of the share capital of Saham Finances from The Abraaj Group (Abraaj) and the International Finance Corporation (IFC), which is a member of the World Bank Group, and the IFC African Latin American and Caribbean Fund (IFC ALAC Fund), which is managed by IFC Asset Management Company. The Saham Group already holds a majority 62.5% shareholding in Saham Finances.
The transaction is subject to regulatory approvals. The acquisition by the Saham Group of the remaining stake (7.5%) is held by Abraaj, IFC and the IFC ALAC Fund in Saham Finances. On completion of the transaction, Sanlam Emerging Markets (SEM) will hold 75% and Santam, 25% of the stake through a special purpose vehicle.
The transaction is set to expand the Sanlam Group’s footprint across the African continent, with entry into new attractive markets. These include Cote d’Ivoire, Gabon, Senegal and Cameroon in Francophone West Africa; Morocco and Lebanon in the Middle East; and Angola in Lusophone Southern Africa.
Saham Finances, one of the largest insurers in Africa, is a market leader in most of the 26 countries in which it operates, writing mostly non-life business. It has a network of over 650 branches, staff of more than 3,000 and a consolidated turnover of over US$1 billion.