Sanlam media release
Sanlam is pleased to announce that the requisite approvals have now been obtained to complete the previously announced transaction for the acquisition of a 28.7% stake in the issued share capital of Afrocentric Healthcare Assets Proprietary Limited (AHA) for R703 million.
AHA is a wholly owned subsidiary of AfroCentric Investment Corporation Limited (ACT). This transaction, Sanlam’s largest transaction in South Africa since the acquisition of African Life in 2005, confirms Sanlam’s commitment to also pursue growth initiatives in South Africa whilst growing its presence in other emerging markets.
AHA owns 94.1% of Afrocentric Health Limited which has a 100% shareholding in Medscheme Holdings Limited, South Africa’s largest health risk management services provider and the third largest medical scheme administrator.
Medscheme also has a presence in some of the countries where Sanlam operates – Botswana, Namibia, Swaziland, Kenya and Mauritius. In addition, Medscheme has operations in Zimbabwe, where Sanlam Emerging Markets is in the process of completing the acquisition of a 40% shareholding in the Zimbabwean based insurance business of the Masawara Group.
Read also: Sanlam’s North Africa push: Pays $375mn for a third of Morocco’s Saham
Commenting on the partnership, Sanlam Group’s Chief Executive, Mr Ian Kirk, said the partnership with AHA would complement the Group’s retail offering in the South African and the rest of Africa market and positioned it well for the expected growth in the healthcare sector.
“A full basket offering of financial services has become a requisite for growth and increased success in the South African market. A strong medical scheme will enhance Sanlam’s offering, which does not currently have scale commensurate with the rest of its retail offering,” he said.
Read also: Johan vd Merwe to leave Sanlam after losing two horse race to Kirk
“We are confident that Medscheme is a suitable partner with the necessary scale and management expertise to add value to our South African business and bring a medical aid solutions to our clients. We also believe Medscheme’s operations outside South Africa provide an excellent platform for further international expansion,” Kirk said.
This will form part of an expanded administration and managed healthcare business model.
Commenting on the transaction, ACT’s Dr Anna Mokgokong said: “This transaction offers us access to Sanlam’s extensive distribution network as well as a suite of financial products. We expect the partnership to positively position the ACT Group for further growth.”
