Sanlam Expands Its Portfolio by Acquiring 25% of African Rainbow Capital Financial Services

Sanlam Ltd., South Africa's top insurance firm, is set to invest significantly by acquiring a 25% stake in African Rainbow Capital Financial Services Holdings. This company, backed by billionaire Patrice Motsepe—who also serves as Sanlam’s deputy chairman—controls several financial entities, including the digital bank TymeBank.

The deal, valued at approximately 3.9 billion rand ($218 million), will see Sanlam’s Life unit purchasing a quarter share of African Rainbow Capital Financial Services Holdings. This holding company has investments in notable businesses such as TymeBank, AI Fund, CrossFin Holdings, and Ooba. The transaction will be executed through a mix of cash and a share swap arrangement. Sanlam will pay 2.413 billion rand in cash and exchange its 25% stake in African Rainbow Capital Financial Services Investments—worth 1.492 billion rand—for an equivalent value in shares of the broader holding company.

TymeBank, a key asset within African Rainbow Capital’s portfolio, is supported by global tech giant Tencent Holdings Ltd. and is valued at nearly $1 billion, according to CEO Coenraad Jonker. The digital bank has gained attention for its innovative banking solutions, especially in serving underserved communities in South Africa.

Source: Innovation Village