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SANLAM LIMITED - Acquisition of a 53% stake in BrightRock Holdings Proprietary Limited

Release Date: 25/01/2017 15:56
Code(s): SLM     PDF:  
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Acquisition of a 53% stake in BrightRock Holdings Proprietary 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”)


ACQUISITION OF A 53% STAKE IN BRIGHTROCK HOLDINGS PROPRIETARY LIMITED (“BrightRock”)



The board of directors of Sanlam Limited is pleased to announce the conclusion of agreements whereby
Sanlam Life Insurance Limited, the largest operating subsidiary of Sanlam, will acquire a 53% stake in life
insurance provider, BrightRock, through a combination of a share subscription and purchase from various
management shareholders and Correlation Investments Limited (the “Transaction”).

The total consideration is dependent on the effective date of the Transaction and is expected to be a maximum
of R707 million should the effective date occur in the first half of 2017. Sanlam will fund the acquisition from
available discretionary capital.

The BrightRock group offers individualised, needs-matched life insurance cover that is built around a client’s
needs and is designed to change as a client’s needs evolve. BrightRock was launched in the intermediated,
individual risk market in 2012 and has since grown rapidly, establishing a strong market presence.

The Transaction is in line with Sanlam’s strategy to seek profitable and sustainable growth opportunities and is
testimony to Sanlam’s commitment to invest in South Africa. In terms of the Transaction agreement, Sanlam
and BrightRock will retain their own brands, life insurance licences and management teams. BrightRock
products are currently sold solely through independent brokers but the product range will in future also be
available through Sanlam Financial Advisers. Sanlam believes that this places it in a strong position to further
grow its market share, while BrightRock gains a growth partner that is supportive of its aspirations to grow into
a highly differentiated financial services business of scale.

The implementation of the Transaction remains subject to the fulfilment of a number of suspensive conditions,
including, inter alia, the receipt of all necessary regulatory approvals. The effective date of the Transaction will
therefore be dependent on the fulfilment of the suspensive conditions.

The Transaction is categorised below the Category 2 threshold for Sanlam for purposes of the JSE Limited
Listings Requirements and this announcement is made on a voluntary basis.




Bellville
25 January 2017

Sponsor to Sanlam
Deutsche Securities (SA) Proprietary Limited

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