SOUTH AFRICA – Assupol Holdings Limited, a South African insurance company, has announced that Sanlam Limited Sanlam, through its wholly owned subsidiary Sanlam Life Insurance Limited Sanlam Life, intends to acquire 100% shareholding in it, pending shareholder and regulatory approval, for R6.5 billion (US$348,664).
This proposed transaction, to be implemented by way of a Scheme of Arrangement, follows the announcement last year that Budvest Proprietary Limited (Budvest), which holds 46.02% of Assupol’s securities, as well as the International Finance Corporation (IFC), holding 19.41% of Assupol, intends to dispose of their respective shareholdings.
Both have been shareholders in Assupol for 10 years. Budvest and IFC have provided irrevocable undertakings to vote in favour of all the resolutions required to implement the Scheme of Arrangement.
The decision on the new potential investor, Sanlam, was made after careful consideration and extensive evaluation, by the Assupol Board of Directors, of the potential benefits for all parties involved.
“This acquisition by Sanlam will not only strengthen Assupol’s position in the market but also enhances our ability to continue providing exceptional value to our clients. We are excited about this new chapter and look forward to the benefits it will bring to both our employees and clients,” Assupol Chairman, Dr Reuel Khoza, said.
This strategic move will further strengthen the two companies’ position in the market and enhance their ability to provide comprehensive insurance solutions to their respective clients. There are no anticipated changes to the operations of both companies arising from Sanlam’s offer.
Assupol’s excellent brand and reputation, which is trusted and widely recognised with over four million lives insured in South Africa, will be preserved and further promoted.
Sanlam and Assupol share similar values regarding socio-economic transformation and ethical behaviour and are excited about the positive impact their combination can bring to the South African market and to the lives of clients.
The board of directors of Assupol, in accordance with Regulation 108 of the Takeover Regulations, constituted an independent board, considering the terms of the Sanlam offer. The independent board has resolved to recommend the offer to Assupol ordinary shareholders and the holders of the ‘B’ shares in Assupol.
The implementation of the Scheme of Arrangement will be subject to the fulfillment or waiver, as the case may be, of conditions precedent, by 31 January 2025, including, Assupol shareholder, CTSE, the Takeover Regulation Panel, the competition authorities and all other relevant approvals for a transaction of this nature.
Assupol is a South African insurance company which began in 1913 as a burial society. From that modest and caring beginning, it has grown into a fully-fledged life-insurer, serving those who serve and often leading with innovative products and services.
Liked this article? Subscribe to DealStreet Africa News, our regular email newsletter with the latest news, deals and insights from Africa’s business, economy, and more. SUBSCRIBE HERE
