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SLM/SLA - Sanlam - Sanlam Acquires UK Private Client Business
Sanlam Limited
(Incorporated in the Republic of South Africa)
(Registration number 1959/001562/06)
JSE share code: SLM
NSX share code: SLA
ISIN number: ZAE000070660
("Sanlam" or the "Group")
Sanlam acquires UK private client business
Sanlam announced today that it has acquired a majority interest in Principal
Investment Holdings ("Principal"), a UK-based private client investment
business. The transaction complements the existing private client business of
Sanlam Private Investments ("SPI").
Principal manages approximately GBP1 billion (R15,1 billion) worth of assets on
behalf of high net worth individuals, family trusts, charities and smaller
corporate clients in the UK.
Sanlam`s Group chief executive Dr Johan van Zyl said that the acquisition of
Principal reflects the consistent progress the Sanlam Group is making in all the
elements of the strategy it began implementing four years ago.
"Principal is the type of high quality private client investment business we
were looking for in the UK as another building block in our strategy of growth
and diversification through selective acquisitions, geographical expansion and
extended financial solutions to our clients.
"In line with this strategy we have over the past four years also acquired
Merchant Investors in the UK, a niche player in the affluent life and specialist
pension markets and, through an equity stake holding, the operations of the UK
based intermediary distribution company, Intrinsic and investment management
administration platform, Nucleus. Principal will provide a new client base in
the UK and play a significant role in harnessing synergies and further promoting
the strategic development plans of Sanlam in the UK," he said.
SPI, the private client investment manager and stockbroker which falls within
the Sanlam Investments cluster in the Sanlam group, has established an excellent
reputation in South Africa. Van Zyl said, "I believe that SPI`s future
relationship with Principal and the access to its product range will lead to an
improved client offering and the continued growth of SPI`s South African client
base."
Daniel Kriel, SPI`s CEO, said that the company had been actively looking to
expand its offshore offering and partner with an international business for the
past two years. "The investment needs of South African investors have become
more sophisticated and they are increasingly looking for offshore opportunities
and a global spread of risk. For this reason, SPI has placed a strong emphasis
on expanding its offshore offering.
"Principal strengthens our existing offshore offering, which includes an
association with Pictet Bank of Switzerland, and allows us to take this aspect
of our business to the next level by creating new investment opportunities for
our clients. It is a highly profitable business and its strategy and culture
perfectly complement our own. It has a well respected management team, proven
investment track record, solid client base and reputation for excellence
developed over the past 20 years."
Anne Gilbert, Group Managing Director of Principal said that, as a
successful UK-based private client investment business, the board of
Principal was eager to expand the reach of the business. "We have a great
team of investment managers, highly skilled support staff and, together with
our efficient and scaleable operating systems, we have the infrastructure to
take the business forward substantially. This link-up with Sanlam will help us
achieve our targets for the future".
She said that, importantly, Principal had a long tradition of employee ownership
and so it was very important that Sanlam`s business philosophy was based on
encouraging an entrepreneurial culture. "The opportunity exists for continuing
employee ownership participation. Throughout our discussions with Sanlam, we
have been particularly impressed by the calibre of their management team and the
potential fit with Principal`s own operations and ambitions.
As well as providing the backing of a large financial services group, Sanlam`s
involvement will give us access to a broader range of investment capabilities,
allowing us to enhance the investment service we offer our existing clients and
introducers, while maintaining our current operations and the high level of
personal service on which our business has been built. As part of the Sanlam
Group, I believe there is every prospect of an exciting future for Principal,"
Gilbert added.
Subject to the level of acceptance of the offer by certain members of Principal
staff and management, Sanlam will acquire up to 86 percent of Principal for
approximately GBP35 million pounds (R531 million). The balance of the shares
will be held by staff and management. The transaction is subject to regulatory
approval and will be effective as soon as this has been obtained. A portion of
the transaction price is subject to agreed market performance measurements. The
transaction consideration will be settled in cash.
Notes to editors:
The Sanlam Group
Sanlam is a leading financial services group in South Africa, listed on the JSE
and Namibian stock exchanges. The Group comprises a number of mutually dependent
business entities focusing mainly, but not exclusively, on wealth creation and
protection, investment management and ancillary financial services solutions for
individuals and institutions. Apart form the UK, the Group has business
interests elsewhere in Africa and in India. The Group has assets under
management in excess of R525 billion (GBP35 billion) and an employee base of
9,000. www.sanlam.co.za.
Sanlam Investments
Sanlam Investments is the cluster of businesses within the Sanlam Group which
specialises in investment management. It comprises 14 individual businesses,
each of which functions as an entrepreneurial entity with a shared focus on
delivering leading performance and client service. www.sim.sanlam.com.
Sanlam Private Investments ("SPI")
SPI is a private client portfolio management and stockbroking business which
falls within the Sanlam Investments cluster of the Sanlam Group. It serves high
net worth individuals, charitable trusts and smaller institutions. With some R50
billion (GBP3.3 billion) of assets under management and nearly 90 employees, SPI
is the second largest South African private investment manager. It has branches
in Cape Town, Durban, George, Knysna, Johannesburg, Sandton and Pretoria.
www.sanlamprivateinvestments.co.za
Principal Investment Holdings ("Principal")
Principal is one of the leading independent investment companies in the South of
England. Founded in 1987, it now employs around 90 people in its offices in
Sevenoaks, London and Bath. It looks after some GBP1 billion (R15.1 billion) on
behalf of its clients. It specialises in discretionary portfolio management for
private individuals, family trusts and smaller corporate clients.
www.principalinvestment.co.uk
Daniel Kriel SA PR contact :
Sanlam Private Investments Julie Bekker
Tel: 021-950-2571 Atmosphere Communications
Mobile: +27 83 414 7374 Tel : +27 21 469 1564
danielk@spi.sanlam.com Mobile: +27 82 359 2461
Email: julie@atmosphere.co.za
Anne Gilbert UK PR contact :
Principal Investment Management Limited Kathryn Walker
Tel: +44 1732 740 700 Group Communications Manager
anne.gilbert@principalinvestment.co.uk Principal Investment Holdings
Tel: + 44 7770 886639
Email: kathryn.walker@hotmail.co.uk
Bellville
12 February 2008
Sponsor:
Deutsche Securities (SA) (Proprietary) Limited
Date: 12/02/2008 09:00:02 Supplied by www.sharenet.co.za
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