Rabat – South Africa-based Sanlam has concluded its acquisition of Morocco’s insurance provider Saham Finances, making it a leading pan-African financial services group.
Sanlam announced it had fulfilled all the conditions to acquire the remaining 53.4 percent of Saham Finances for $1.1 billion, in a statement Thursday, October 11.
In 2016, Sanlam Emerging Markets acquired a 30 percent stake in Saham Finances and increased its stake to 46.6 percent in 2017.
With this acquisition, which took effect on October 11, Sanlam now holds 90 percent of Saham Finances. Santam, a subsidiary of Sanlam, holds 10 percent.
Sanlam will now have a presence in 33 African countries, enabling it “to expand its multinational client base, strengthen its position in specialist insurance and employee benefits,” reads Sanlam’s statement.
Ian Kirk, the Group CEO of Sanlam said, “The conclusion of this transaction is an important milestone in achieving our vision of becoming a leading financial services group on the continent.
“The confluence of the combined footprint and respective expertise of Sanlam, Santam, and SAHAM Finances provides the Sanlam Group with an opportunity to grow its Life Insurance businesses in Francophone markets as well as leveraging the Group’s expertise to grow the general insurance portfolio.”
Nadia Fettah, who will remain the CEO of Saham Finances, asserted, “The businesses are complementary. SAHAM Finances developed into a leading insurance group in Africa outside of South Africa, with leading businesses in most of the 26 countries in which it operates.”
Fettah and Emmanuel Brule, deputy CEO of Saham Finances, will join the Sanlam Emerging Markets executive committee, said Junior Ngulube, Sanlam Emerging Markets CEO.
Saham Finances was established in Morocco in 1995 as a subsidiary of Saham Group and recorded a turnover of $1.2 billion USD in 2017.
At the end of 2017, Saham Finances consolidated net assets worth $850 million and earnings of $77.4 million.
Sanlam will take over Saham Finance’s 65 subsidiaries, 700 branches, and more than 3,000 employees.
