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

SANLAM LIMITED - Disposal of Enterprise Group Investments

Release Date: 23/06/2017 15:59
Code(s): SLM     PDF:  
Wrap Text
Disposal of Enterprise Group Investments

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” or “the Group”)


Disposal of Enterprise Group investments

The board of directors of Sanlam hereby announces that Sanlam Emerging Markets
Proprietary Limited (“SEM”), a wholly-owned subsidiary within the Sanlam Group, has
entered into agreements on 22 June 2017 with Black Star Holdings Limited, a separate
managed account held by LeapFrog Strategic African Investments and Prudential
Insurance of America, for the disposal of its stakes in Enterprise Life Assurance
Company Limited, Enterprise Trustees Limited and Enterprise Insurance Company
Limited for a cash consideration of US$130 million (“the Disposal”). With SEM as a
strategic partner in both the Enterprise Group and Saham Finances, it would have been
difficult to meet the regional expansion aspirations of the Enterprise Group. The parties
therefore agreed for SEM to exit from the Enterprise Group, but with Sanlam able to
continue participating in Ghana. Ghana remains a strategically important geography for
the Sanlam Group and options to re-establish a meaningful presence in the country are
under consideration.

The Enterprise Group contributed R105 million to Sanlam’s net result from financial
services, R281 million to new business volumes and R53 million to net Value of New
Business in the 2016 financial year. At current exchange rates, Sanlam Emerging
Markets is expected to realise a profit compared to the 31 December 2016 Group
Equity Value of the business. The transaction remains subject to conditions precedent,
including regulatory approvals and notifications.

The conclusion of the Disposal will increase the Group’s available discretionary capital,
after allowance for payment of the BrightRock and PineBridge transactions, to some R2
billion, which is sufficient for the Group’s immediate needs. Raising debt to fund a
portion of the additional 16.6% stake acquired in Saham Finances, as referred to in the
Operational Update released on the Stock Exchange News Services of the JSE Limited
on 7 June 2017, is commensurately not subject to further consideration.

The consideration in respect of the Disposal is below the categorisation threshold of the
JSE Limited Listings Requirements.

Cape Town
23 June 2017

Sponsor
Deutsche Securities (SA) Proprietary Limited

Date: 23/06/2017 03:59:00 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