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RAND MERCHANT INVESTMENT HOLDINGS LIMITED - Voluntary announcement: sale of Youi New Zealand insurance portfolio

Release Date: 25/09/2019 07:05
Code(s): RMI     PDF:  
 
Wrap Text
Voluntary announcement: sale of Youi New Zealand insurance portfolio

Rand Merchant Investment Holdings Limited
(Incorporated in the Republic of South Africa)
(Registration number: 2010/005770/06)
ISIN: ZAE000210688
JSE ordinary share code: RMI
(“RMI”)

VOLUNTARY ANNOUNCEMENT: SALE OF YOUI NEW ZEALAND INSURANCE
PORTFOLIO

Shareholders are advised that OUTsurance Holdings Limited, the 89%-held subsidiary of
RMI, has agreed to transfer its New Zealand insurance business (operated by Youi New
Zealand, a subsidiary of Youi Holdings Proprietary Limited) to Tower Insurance Limited,
New Zealand’s third largest general insurer (“the sale”).

The sale provides an opportunity for Youi to unlock value on favourable terms and, going
forward, will allow the Youi group to focus on its Australian business where the greater
scale and diversity of the market offers more growth opportunities for a challenger brand
like Youi.

The sale price range is between NZ$10 million and NZ$13 million. Importantly, the sale will
release capital allocated to the New Zealand business (ca. NZ$45 million).

The transaction, which is subject to regulatory approval, is expected to close in the fourth
quarter of 2019.

Sandton
25 September 2019

Sponsor
RAND MERCHANT BANK
(A division of FirstRand Bank Limited)

Date: 25/09/2019 07:05:00
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