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Sanlam Emerging Markets and Shriram Capital Limited
SANLAM LIMITED
Incorporated in the Republic of South Africa
(Registration number 1959/001562/06)
JSE share code: SLM
NSX share code: SLA
ISIN: ZAE000070660
(“Sanlam”)
SANLAM EMERGING MARKETS and SHRIRAM CAPITAL LIMITED
South African financial services group Sanlam today announced the finalisation of a further R2 billion
investment in the leading Indian financial services group Shriram Capital Limited (SCL).
Sanlam’s proposed investment into SCL was first announced in September 2011 and has been subject to a
number of conditions and regulatory approvals. These have since all been obtained which allowed for the
final conclusion of the transaction. The investment in SCL has been made by Sanlam Emerging Markets
(SEM), the cluster within Sanlam responsible for financial services in emerging markets outside of South
Africa. The acquisition augments its existing portfolio of businesses in Africa and Asia, in support of the
Group’s target of sustainable value creation in these growth markets.
Following the transaction, SEM effectively owns of 26% of SCL. The investment has been funded from
Sanlam’s surplus capital.
At the release of Sanlam’s interim results for the six months to the end of June 2012 on 6 September 2012,
Sanlam Group CEO Dr Johan van Zyl reiterated Sanlam’s strategic emerging market focus in Africa and
India.
Mr Heinie Werth, CEO of SEM, said concluding the transaction with Shriram, means a more meaningful
exposure for Sanlam in India.
“The transaction will strengthen our relationship with Shriram. Strategically, Sanlam previously entered
into insurance joint ventures with the Shriram Group to participate in and benefit from the growing
financial services industry in India. This transaction is an important and logical next step for SEM in our
relationship with Shriram as it will provide us with access to SCL’s wider financial services exposure in India
and will see SEM diversifying its earnings base. In particular this includes exposure to credit businesses and
other distribution entities. We foresee synergies across all these business and more opportunities for client
cross-selling.
“We are in particular proud to have concluded this transaction with the leadership of Shriram as our
partners. We see this transaction as a highlight in the relationship we have enjoyed with the Shriram Group
thus far. The strong partnership that we have is further entrenched to the long term benefit of both
partners,” Werth said.
Werth added that whilst the economic environment in India is currently somewhat challenging, he remains
confident of its longer term potential and that the investment in SCL will in time yield an attractive return.
Sanlam has been in partnership with the Indian Shriram Group in respect of life insurance (Shriram Life)
since 2005 and short term insurance (Shriram General) since 2008.
Mr Gopalasamudram Sundararajan, Executive Director for the Shriram Group, said: “Sanlam’s partnership
with us has been catapulted to the next level with this investment. We at the Shriram Group whole-
heartedly welcome this mutually beneficial alliance.”
SCL, in which SEM has now acquired a 26% stake, is the holding company for the financial services interests
of the Shriram Group. Following conclusion of the transaction these consist of a 100% interest in the two
insurers, as well as a 25% holding in Shriram Transport Finance Company (“STFC”) - a listed commercial
vehicle financing business with an approximate R60 billion loan book, a 30% holding in Shriram City Union
Finance (“SCUF”) - a listed retail financing business with an approximate R16 billion loan book, 100% of a
distribution business employing 100 000 agents and a start-up wealth management and a brokerage
business.
END
Issued by Sanlam Group Communication
For further enquiries, please contact Ainsley Moos, Head of Group Communication at Sanlam:
• ainsley.moos@sanlam.co.za
• +2721 947 5967
• +2783 296 4697
Note to Editors: About Shriram
The Shriram Group has a number of investments in a variety of sectors. Within the financial services sector
it has investments in commercial vehicle financing, consumer and enterprise finance, retail stock broking,
life insurance, non-life (general) insurance and the distribution of investment and insurance products.
The Shriram Group has also made investments in Manufacturing, Value Added Services, Project
Development, Engineering Services, Pharmaceuticals, Machined & Auto Components, Press Dies & Sheet
Metal Stamping, Packaging, Information Technology and Property Development.
Bellville
2 October 2012
Sponsor
Deutsche Securities (SA) Proprietary Limited
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