To view the PDF file, sign up for a MySharenet subscription.

SANLAM LIMITED - Sanlam Emerging Markets and Shriram Capital Limited

Release Date: 02/10/2012 10:35
Code(s): SLM     PDF:  
Wrap Text
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 

Date: 02/10/2012 10:35:00 Produced by the JSE SENS Department. The SENS service is an information dissemination service administered by the JSE Limited ('JSE'). 
The JSE does not, whether expressly, tacitly or implicitly, represent, warrant or in any way guarantee the truth, accuracy or completeness of
 the information published on SENS. The JSE, their officers, employees and agents accept no liability for (or in respect of) any direct, 
indirect, incidental or consequential loss or damage of any kind or nature, howsoever arising, from the use of SENS or the use of, or reliance on,
 information disseminated through SENS.

Share This Story