Sanlam shareholders approve package of B-BBEE transactions to enable growth
Sanlam has welcomed the decision by shareholders to approve the package of strategic empowerment transactions, which was announced on 31 October 2018.
Shareholders voted in favour of the resolutions as follows:
Special resolution number 1: Specific authority to the Company to issue securities for cash (98.88%);
Special resolution number 2: Specific authority to provide financial assistance to a related party for the purpose of subscribing for securities (98.03%);
Special resolution number 3: Specific authority to provide financial assistance to a related party for the purpose of, among others, acquiring securities in subsidiaries of the Company (97.43%); and
Ordinary resolution number 1: To authorise any director of the Company, and where applicable the secretary of the Company, to implement the aforesaid special resolutions (97.98%).
Says Sanlam Group Chief Executive Officer, Mr Ian Kirk: “This is a very strong vote of confidence that will enable management to forge ahead with the implementation of the transactions. We believe these will be good for the company and for the country, enhancing our empowerment status and our long-term growth and sustainability while we continue to contribute to South Africa’s shared prosperity. The Board also took note of certain governance concerns raised in today’s climate of heightened governance standards and transparency and will continue to engage and improve on this as we continue to drive our strategy.”
Together with Sanlam’s acquisition of SAHAM Finances, the series of transactions will maintain the Group’s position as a leading financial services company across Africa. The transactions will also strengthen the competitive position of Sanlam’s South African operations by broadening the base of black ownership and strengthening the relationship with the Group’s longstanding empowerment partner, Ubuntu-Botho (UB).
Further details on the implementation of the transactions will be announced in 2019.
Sanlam announced in October that it intended to issue shares constituting, in aggregate, 5% of the enlarged issued Sanlam ordinary shares (net of treasury shares) to a new broad-based group of empowerment shareholders and UB.
The Group also planned to provide a R2 billion facility to UB or its subsidiaries to support the execution of Sanlam’s empowerment strategy. This would be achieved by enabling UB to acquire, directly or indirectly, an interest in specific operating subsidiaries of the Sanlam Group and would facilitate investment by UB in financial services companies that will be complementary to the broader Sanlam Group’s vision and strategy.
In addition to providing the UB facility, there is an in principle agreement that Sanlam or a wholly-owned subsidiary of Sanlam will, subject to definitive agreements, acquire a 25% stake in African Rainbow Capital Financial Services from African Rainbow Capital.
ABOUT SANLAM GROUP
Sanlam is a pan-African financial services group listed on the Johannesburg, Namibian and A2X stock exchanges. Through its five business clusters – Sanlam Personal Finance, Sanlam Emerging Markets, Sanlam Investments, Sanlam Corporate and Santam - the Group provides comprehensive and bespoke financial solutions to institutional clients and consumers across all market segments. Sanlam’s areas of expertise include insurance (life and general), financial planning, retirement, investments and wealth.
Established in 1918 as a life insurance company, Sanlam has become the largest non-banking financial services group in Africa, through its global diversification strategy.
Headquartered in South Africa, Sanlam has a direct stake in financial services entities in Namibia, Botswana, Swaziland, Zimbabwe, Mozambique, Mauritius, Malawi, Zambia, Tanzania, Rwanda, Uganda, Kenya, and Nigeria. It also owns SAHAM Finances Group, thereby having a footprint of insurance operations in Morocco, Angola, Algeria, Tunisia, Ghana, Niger, Mali, Senegal, Guinea, Burkina Faso, Cote D’Ivoire, Togo, Benin, Cameroon, Gabon, Republic of the Congo, Madagascar, Burundi, and Lesotho, making it the largest non-banking financial services group in Africa.
Sanlam also has exposure to insurance businesses in India, Malaysia and the United Kingdom and has business interests in the USA, Australia, and the Philippines. Lebanon and Saudi Arabia.
For further information, visit www.sanlam.com or follow us @sanlam.
Allim Milazi, Sanlam Group Communications on 082 889 5874 or email@example.com
Petra Steenkamp, Sanlam Group Communications on 082 431 7956 or Petra.firstname.lastname@example.org