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SANLAM - SANLAM AND THEBE FORM STRATEGIC ALLIANCE SANLAM LIMITED REGISTRATION NUMBER: 1959/001562/06 INCORPORATED IN THE REPUBLIC OF SOUTH AFRICA SHARE CODE JSE: SLM ISIN: ZAE000028262 9 December 2004 SANLAM AND THEBE FORM STRATEGIC ALLIANCE Sanlam Limited and Thebe Investment Corporation (Thebe), the oldest black economic empowerment company in South Africa, today announced that they have entered into an agreement for Sanlam to become a strategic partner in Thebe"s financial services proposition. The transaction comprises the following: Sanlam Life will acquire 55% of Safrican, Thebe"s life assurance company focusing on life, funeral and credit life insurance. Part of Safrican"s distribution activities will be hived-off in a new entity called Thebe Community Financial Services (TCFS), which will be used to expand the Thebe Group"s financial services offering to its target markets. TCFS will be 70% owned by Thebe and 30% by Sanlam Independent Financial Services - a Sanlam cluster that invests in independent customer-facing entities and intermediary businesses in the financial services industry. Vusi Khanyile, Chairman of Thebe said, "Combining Thebe and Sanlam"s resources in this market segment will provide the people, infrastructure and capital required to take financial services products to our communities in a cost- effective manner. The relationship is a reflection of a shared vision and our common view of this segment of the market. The injection of funding enables Thebe to explore new opportunities in the distribution of financial services products, to streamline our operations and to leverage Sanlam"s product portfolio to our advantage." Johan Van Zyl, CEO of Sanlam said: "Our alliance with Thebe is another step in Sanlam"s strategy of having multiple client-facing units or brands in the entry- level market and to complement organic growth through strategic acquisitions. Earlier in the year this was also evident from the creation of Break-thru Financial Services with FAWU. As targets are achieved, both these transactions will enhance Sanlam"s distribution reach and will provide an attractive return on capital invested as well as improving business volumes." Several of Thebe"s successful businesses will be housed in Thebe Community Financial Services (TCFS). This will include Creditworx, a credit risk solution company, with more than 102 branches throughout the country and an extensive corporate client base with access to a large number of walk-in customers. It will also include Thebe Employee Benefits (TEB), an employee benefits consulting and administration entity; Thebe Transactiv, a data and money movement entity and Thebe YoMnotho, offering SITE tax reconciliation services. Safrican is one of the oldest, most established brands in the entry-level market segment, with over R240 million annual premiums, almost two million insured members and 600 brokers. Safrican also has a distribution agreement with the South African Post Bank until the end of 2006, giving Sanlam and Thebe further access to almost 3000 branches. Sanlam and Safrican will be the exclusive long-term insurance product providers in TCFS. The aim is to expand TCFS to aggressively distribute financial services products through establishing financial services outlets and through its Post Office agreement. Both organisations will be able to capture a broad part of the market, as it will combine Safrican"s experience and distribution capabilities in the entry-level market and Sanlam"s experience and product portfolio in other markets," said Van Zyl. Vusi Khanyile from Thebe concluded that Thebe"s shareholders, including Batho Batho Trust, are very positive about the Sanlam partnership. "There are tremendous synergistic opportunities for both ourselves and Sanlam, which can now be unlocked. As such, we view these developments as a win-win scenario for everyone involved." The transaction is subject to certain regulatory approvals. -Ends- For further information contact: Thebe: Portia Tau Thebe Tel: (011) 447 7800 Cell: 082 619 2507 Marina Penderis Magna-Carta Tel: (011)784 2598 Cell: 082 561 0429 Sanlam Frans van Rensburg Sanlam Tel: 021 947 4893 Cell: O82 805 9245 Heinie Werth Sanlam Tel: 021 947 9224 Cell: 083 286 2834 Di Munro Brunswick Tel: 011 268 5750 Cell: 083 326 5958 Notes to editors Thebe Thebe, which was established in 1992 by Batho Batho Trust, now focuses on five business areas, namely Financial Solutions, Insurance, Healthcare, Tourism and Strategic Investments. Prior to the deal with Sanlam, Batho Batho Trust owned 74% of Thebe Investment Corporation, with the remaining approximately 26% owned equally by Sanlam, Old Mutual and Investec (i.e. 8.7% each). In addition to its investment in TIC, Sanlam will now hold 30% of TCFS and 55% of Safrican. Safrican Safrican began as a burial society in 1932 in Sophiatown. The company has transformed itself from a burial society to an insurance company. Safrican has over R240 million annual premiums, almost two million insured members and 600 brokers. Date: 09/12/2004 10:42:37 AM Supplied by www.sharenet.co.za Produced by the JSE SENS Department
