She said the premium Sanlam is paying for its Santam shares is good news for the business’s stakeholders.<\/p>\n\n\n\n
In its firm intention announcement, Sanlam said it would offer R505 per share for all ordinary shares in Santam, a roughly 26% premium on the company’s previous close.<\/p>\n\n\n\n
For Sanlam, Viljoen said the deal was a good strategy to capture the full earnings of the company and increase its exposure to the insurance market.<\/p>\n\n\n\n
“This is a really good strategic move,” she said. “They can now capture 100% of the earnings of Santam.”<\/p>\n\n\n\n
Despite this positive perspective, Sanlam’s shares were in the red when markets closed on Monday, following the deal’s announcement.<\/p>\n\n\n\n
The group traded at 7,700 cents per share when the bell rang, a 1.47% decline from the last day of trading on Friday.<\/p>\n\n\n\n
Viljoen also said the acquisition would simplify the group and help give Sanlam more flexibility in its operations.<\/p>\n\n\n\n
“It really simplifies the group for Sanlam, and they are getting more flexibility on their capital allocation,” she said.<\/p>\n\n\n\n
“The only bad thing is that now we are losing another quality company from the JSE.”<\/p>\n\n\n\n
As part of the proposed acquisition, Santam would fully delist from the Johannesburg Stock Exchange (JSE).<\/p>\n\n\n\n
This would bring an end to Santam’s 62 years of trading on the bourse, having listed on the exchange in 1964.<\/p>\n\n\n\n
Caught by surprise<\/h2>\n\n\n\n![\"\"](\"https:\/\/businesstech.co.za\/news\/wp-content\/uploads\/2024\/02\/sanlam-e1741251654707-1024x577.jpg\")
<\/a><\/figure>\n\n\n\nWhile Santam and Sanlam are closely linked, Viljoen said the takeover announcement caught investors by surprise on Monday.<\/p>\n\n\n\n
She said the deal “was always on the cards. But did we expect it? Not really.”<\/p>\n\n\n\n
She said the deal did not come as too much of a shock, since Sanlam has previously tried to take ownership of Santam.<\/p>\n\n\n\n
“Sanlam has historically tried to do a similar deal with Santam, and it failed,” she said.<\/p>\n\n\n\n
The two companies share a close history, dating back to 1918, when Santam helped found Sanlam as a parent company.<\/p>\n\n\n\n
This relationship changed in 1954 when Sanlam became an independent company and took majority ownership of Santam.<\/p>\n\n\n\n
Today, Santam is South Africa’s largest short-term and general insurance company, holding a market share of approximately 22%, according to its website.<\/p>\n\n\n\n
For the insurance giant, the proposed acquisition is intended to give long-term support and accelerate its existing growth strategies.<\/p>\n\n\n\n
“Full private ownership underscores Sanlam’s enduring commitment to driving Santam’s sustained growth and long-term stability,” the companies said in a joint statement.<\/p>\n\n\n\n
They said the takeover would give Santam “continued access to Sanlam’s scale, capital strength, and diversified capabilities, reinforcing Santam’s competitive advantage in general insurance.”<\/p>\n\n\n\n
They also said the deal is aimed at “strengthening South African leadership, driving international expansion and scaling ecosystems through broader group partnerships.”<\/p>\n\n\n\n
For Sanlam, the acquisition would simplify the company and improve shareholders’ understanding of it, the companies said.<\/p>\n\n\n\n
“The Proposed Transaction simplifies the Sanlam Group structure, strengthens Sanlam’s equity story, enhancing investor understanding of the Sanlam Group,” they said.<\/p>\n\n\n\n
“It is also expected to enhance trading liquidity in Sanlam shares by consolidating multiple listed entry points into a single platform.”<\/p>\n","protected":false},"excerpt":{"rendered":"
Santam’s share prices surged on Monday, following the announcement that it would be bought out and delisted.<\/p>\n","protected":false},"author":131,"featured_media":802063,"comment_status":"open","ping_status":"closed","sticky":true,"template":"","format":"standard","meta":{"_sma_x_autopost_status":"posted","_sma_x_autopost_error":"","_sma_x_post_id":"2107373805215547587","_sma_facebook_post_id":"191437357620492_2228061398014259","_sma_instagram_post_id":"18110996957141712","_sma_x_attempts":1,"footnotes":""},"categories":[4],"tags":[26712,175,2880,341],"class_list":["post-878398","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-business-opinion","tag-alyssa-viljoen","tag-jse","tag-sanlam","tag-santam"],"_links":{"self":[{"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/posts\/878398","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/users\/131"}],"replies":[{"embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/comments?post=878398"}],"version-history":[{"count":23,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/posts\/878398\/revisions"}],"predecessor-version":[{"id":878444,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/posts\/878398\/revisions\/878444"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/media\/802063"}],"wp:attachment":[{"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/media?parent=878398"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/categories?post=878398"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/tags?post=878398"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}
<\/a><\/figure>\n\n\n\nWhile Santam and Sanlam are closely linked, Viljoen said the takeover announcement caught investors by surprise on Monday.<\/p>\n\n\n\n
She said the deal “was always on the cards. But did we expect it? Not really.”<\/p>\n\n\n\n
She said the deal did not come as too much of a shock, since Sanlam has previously tried to take ownership of Santam.<\/p>\n\n\n\n
“Sanlam has historically tried to do a similar deal with Santam, and it failed,” she said.<\/p>\n\n\n\n
The two companies share a close history, dating back to 1918, when Santam helped found Sanlam as a parent company.<\/p>\n\n\n\n
This relationship changed in 1954 when Sanlam became an independent company and took majority ownership of Santam.<\/p>\n\n\n\n
Today, Santam is South Africa’s largest short-term and general insurance company, holding a market share of approximately 22%, according to its website.<\/p>\n\n\n\n
For the insurance giant, the proposed acquisition is intended to give long-term support and accelerate its existing growth strategies.<\/p>\n\n\n\n
“Full private ownership underscores Sanlam’s enduring commitment to driving Santam’s sustained growth and long-term stability,” the companies said in a joint statement.<\/p>\n\n\n\n
They said the takeover would give Santam “continued access to Sanlam’s scale, capital strength, and diversified capabilities, reinforcing Santam’s competitive advantage in general insurance.”<\/p>\n\n\n\n
They also said the deal is aimed at “strengthening South African leadership, driving international expansion and scaling ecosystems through broader group partnerships.”<\/p>\n\n\n\n
For Sanlam, the acquisition would simplify the company and improve shareholders’ understanding of it, the companies said.<\/p>\n\n\n\n
“The Proposed Transaction simplifies the Sanlam Group structure, strengthens Sanlam’s equity story, enhancing investor understanding of the Sanlam Group,” they said.<\/p>\n\n\n\n
“It is also expected to enhance trading liquidity in Sanlam shares by consolidating multiple listed entry points into a single platform.”<\/p>\n","protected":false},"excerpt":{"rendered":"
Santam’s share prices surged on Monday, following the announcement that it would be bought out and delisted.<\/p>\n","protected":false},"author":131,"featured_media":802063,"comment_status":"open","ping_status":"closed","sticky":true,"template":"","format":"standard","meta":{"_sma_x_autopost_status":"posted","_sma_x_autopost_error":"","_sma_x_post_id":"2107373805215547587","_sma_facebook_post_id":"191437357620492_2228061398014259","_sma_instagram_post_id":"18110996957141712","_sma_x_attempts":1,"footnotes":""},"categories":[4],"tags":[26712,175,2880,341],"class_list":["post-878398","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-business-opinion","tag-alyssa-viljoen","tag-jse","tag-sanlam","tag-santam"],"_links":{"self":[{"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/posts\/878398","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/users\/131"}],"replies":[{"embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/comments?post=878398"}],"version-history":[{"count":23,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/posts\/878398\/revisions"}],"predecessor-version":[{"id":878444,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/posts\/878398\/revisions\/878444"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/media\/802063"}],"wp:attachment":[{"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/media?parent=878398"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/categories?post=878398"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/tags?post=878398"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}