Sanlam Acquires Majority Stake in MultiChoice’s Insurance Business for 1.2 Billion Rand

Date:

JOHANNESBURG, June 18 (Reuters) – South African insurer Sanlam (SLMJ.J) announced on Tuesday its acquisition of a 60% stake in MultiChoice’s (MCGJ.J) insurance business for 1.2 billion rand ($66 million) in cash, with an additional performance-based earn-out potential of up to 1.5 billion rand.

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MultiChoice, Africa’s largest pay-TV company, revealed that its insurance division has seen significant growth in South Africa. However, expanding further locally and across Africa necessitates increased resources, expertise, and technology.

“Sanlam’s extensive presence and expertise across the African continent, combined with its successful track record in insurance ventures with non-insurers, make it an ideal strategic partner for MultiChoice,” the companies stated in a joint release.

The potential earn-out payment will depend on the total gross written premium generated by the insurance business for the year ending Dec. 31, 2026. Additionally, MultiChoice’s insurance business will declare a pre-acquisition dividend of 59 million rand.

As of 0747 GMT, Sanlam’s shares had risen nearly 5%, while MultiChoice’s shares saw a slight increase of 0.36%.

Following the transaction, MultiChoice will maintain a 40% interest in both the insurance business and the broader commercial venture with Sanlam. The deal allows Sanlam to further expand its insurance and financial services operations across Africa, facilitated through its SanlamAllianz business.

MultiChoice boasts a subscriber base of 21 million households across 50 African countries, while Sanlam operates in 31 countries, including eight of the ten largest African economies.

($1 = 18.2801 rand)

Bisi Adele, The Naija247news
Bisi Adele, The Naija247newshttps://naija247news.com/
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