South Africa’s biggest insurer plans R6.5 billion acquisition

 ·2 Feb 2024

Africa’s biggest insurer Sanlam Limited, through its wholly-owned subsidiary Sanlam Life Insurance Limited (Sanlam Life), intends to buy a 100% shareholding of Assupol Holdings Limited for R6.5 billion.

Life insurer Assupol is a 110-year-old insurance company listed on the Cape Town Stock Exchange CTSE.

The proposed transaction, which will 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, want to dispose of their shareholdings.

“This acquisition by Sanlam will not only strengthen Assupol’s position in the market but also enhance 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.

There are no expected changes to the operations of either company following Sanlam’s offer, with Assupol’s brand, which is recognised by four million lives insured in South Africa, will be preserved.

There are no anticipated changes to the operations of either company 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.

“The board of directors of Assupol, in accordance with Regulation 108 of the Takeover Regulations, constituted an independent board, considered 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,” it said.

“The implementation of the Scheme of Arrangement will be subject to the fulfilment 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.”

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