Sanlam plans full takeover of R44 billion insurance giant
Sanlam has made an offer to buy out all shares of Santam, taking Sanlam’s majority ownership of the company to full ownership.
On 5 October 2026, the two companies issued a joint statement on the Stock Exchange News Service (SENS) outlining the proposed takeover.
In the proposed transaction, Sanlam would buy all remaining ordinary Santam shares for R505, excluding the shares already held by the company.
The proposed amount is roughly 26.6% higher than Santam’s last closing price and a 28.6% premium to its 90-day volume-weighted average price.
Currently, Sanlam is the majority shareholder in Santam, owning 62.7% of all issued Santam shares as of 18 September 2026.
The two companies have been closely linked for years, and used this as part of their rationale for the proposed acquisition.
“Sanlam and Santam share a long-standing commercial partnership spanning more than a century, built on shared values and a common commitment to excellence in insurance and financial services,” the companies said in a joint statement.
“Over time, this relationship has evolved into a strong collaboration, with Sanlam supporting Santam’s position as the leading general insurer in the South African market.”
The companies said the acquisition of Santam was a natural step, given the close relationship between them.
“The Proposed Transaction represents a natural next step in this relationship by fully consolidating Sanlam’s ownership of Santam,” they said.
“The enlarged, simplified Sanlam Group structure will be better positioned to leverage its combined expertise, seize emerging market growth opportunities and continue building on a legacy of shared success.”
Following the proposed takeover, Santam would also delist from the Johannesburg Stock Exchange (JSE), which the companies said would simplify the business.
“Full ownership goes beyond what the current controlling-shareholder structure can deliver by removing the structural constraints associated with a separate listing,” they said.
End of an era
If the proposed transaction is completed, Santam would delist from the JSE, where it has traded since 1964.
The company was founded in 1918, and today is one of South Africa’s largest general insurance companies.
“Santam has built a reputation for reliability, innovation, and customer-centricity over more than a century,” the two companies said.
The group has a market cap of approximately R43.9 billion and has a presence in both domestic and international markets.
While the transaction would end Santam’s 62-year history with South Africa’s exchange, it would also offer several potential benefits for the company.
For shareholders, the planned acquisition would pay a premium on their stake in the company, while providing certainty because it is a cash transaction.
The companies said they would give Santam shareholders a “compelling liquidity and monetisation
opportunity at an attractive premium and certainty of value through an all-cash consideration.”
The companies also said that it would accelerate Santam’s long-term strategy, including international expansion.
Currently, Santam has a presence in the UK market through Syndicate 1918, an underwriting company which recently began operations.
“Santam also participates in the international insurance market through its newly established Lloyd’s syndicate business, which broadens its specialist underwriting capabilities and provides access to global risk diversification and reinsurance opportunities,” the companies said.
The proposed transaction is subject to regulatory approvals, including from the South African Reserve Bank and the Prudential Authority.
“Following implementation of the Scheme, Santam will be automatically delisted from the Main Board of the JSE and will become eligible for delisting, subject to an application to the NSX and the A2X, without any further shareholder approval,” the companies said.
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