Sanlam Ltd. and Santam Ltd. agreed to pay $329 million for an additional 17 percent stake in Saham Finances SA of Morocco, cementing a partnership that boosts the South African insurers’ access to markets in West and North Africa.
The transaction increases the joint holding to 47 percent, after the companies completed the purchase for an initial stake in February for $375 million from investors including Abraaj Group, the Cape Town-based companies said in a statement on Wednesday. The transaction to buy new shares in Saham Financesis subject to regulatory approvals and is expected to close in the second quarter of 2017.
Sanlam, which owns 60 percent of property and casualty insurer Santam, has been expanding in Africa and Asia to help boost profit as South Africa’s economy falters. Saham Finances, a Casablanca-based arm of the Saham Group founded by Moulay Hafid Elalamy in 1995, operates in 26 countries across North, West and East Africa and the Middle East. Source: Bloomberg