Sanlam's Plans to Acquire Assupol: Shaping the Future of Insurance in Africa

Sanlam's Plans to Acquire Assupol: Shaping the Future of Insurance in Africa

By Staff Writer, 07 February 2024

Sanlam Limited, the leading insurer in Africa, has unveiled its plans to acquire a full 100% stake in Assupol Holdings Limited, a venerable life insurance company with over a century of history, for a sum of R6.5 billion.

This ambitious move is set to be executed through Sanlam's wholly-owned subsidiary, Sanlam Life Insurance Limited, and marks a significant development in the insurance landscape.

The decision to pursue this acquisition comes on the heels of last year's disclosure that both Budvest Proprietary Limited, owning 46.02% of Assupol's securities, and the International Finance Corporation, holding a 19.41% stake, are intending to divest their interests in Assupol.

Dr. Reuel Khoza, Chairman of Assupol, expressed confidence that this acquisition will not only fortify Assupol's market standing but also bolster its capacity to deliver outstanding value to its clientele.

Assupol, cherished by over four million life insurance policyholders across South Africa, will continue to operate under its esteemed brand following Sanlam's acquisition, with plans for further enhancement.

The board of directors at Assupol, in adherence to Regulation 108 of the Takeover Regulations, has established an independent board tasked with evaluating Sanlam's offer.

In a statement, the board affirmed its recommendation of the offer to Assupol's ordinary shareholders and holders of its 'B' shares.

However, the fruition of this transaction is subject to meeting or waiving several conditions precedent by January 31, 2025.

These prerequisites encompass approvals from Assupol's shareholders, the Cape Town Stock Exchange, the Takeover Regulation Panel, competition authorities, and all other requisite regulatory bodies.

Source: Tapiwa Matthew Mutisi / Innovation Village

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