Sanlam, SAHAM’s partner since February 2016, will increase its stake in the capital of SAHAM Group’s insurance subsidiary, from 46.6% to 100%, according to the terms of an agreement reached on March 7th, 2018.
Listed on the Johannesburg Securities Exchange, Sanlam is a leading Pan-African financial services group with a market capitalization of over US$16 billion (as at March 7th 2018). The Group intends to strengthen its position on the continent with this transaction.
SAHAM’s insurance business, which started its strategic development in Africa in 2010, is now present in 26 countries through 35 insurance companies.
The acquisition amounts to 1.05 billion dollars, valuing SAHAM Insurance Morocco at 1450 dirhams per share.
This transaction is subject to agreements by various regulators, and will be followed, in accordance with Moroccan stock market regulations, by an offer for a takeover bid of SAHAM Assurance Morocco’s shares, a company listed on the Casablanca Stock Exchange.
SAHAM group attracted a total of $ 1.7 billion of foreign investments to Morocco since 2012, largely through its partnership with Sanlam.
Buyout of Wendel’s shares
In order to fast-track its transformation into an investment fund, SAHAM group has simplified its shareholding structure by buying out French group Wendel’s shares. The partnership with Wendel was instrumental in increasing the group’s diversification since 2013.
Transformation of SAHAM Group into a Pan-African investment fund
With its thorough African expertise and its strong commitment to address large-scale projects, SAHAM group will transform into a Pan-African investment fund, with the ambition of strengthening its position as a strategic continental economic player.
This transformation into an investment fund will strengthen SAHAM Group’s footprint, with over 14.000 employees and several sectors in its portfolio after this transaction.
Key partnerships are expected to be announced soon as well as strategic acquisitions.
Mr. Moulay Mhamed Elalamy, SAHAM Group’s spokesman said:
“SAHAM Group’s DNA lies within its ability to bring together leading international investors, such as the World Bank, Kingdom Zephyr, Abraaj, Allianz, Bertelsmann, Wendel and more recently the Sanlam Group. As part of its transformation into a Pan-African Investment Fund, SAHAM will now attract new partners, to break new ground, and invest in future-oriented businesses, development accelerators for our country and our continent.”
Mr. Ian Kirk, Sanlam Group’s Chief Executive Officer said:
“We welcome this opportunity to strengthen our investment in the Kingdom of Morocco, a major African gateway and a country which enjoys institutional and macro-economic stability. Our investments alongside SAHAM Group reflects a mutually beneficial intra-African partnership, and we hope to work together on other major projects in the future.”