OUTsurance informed shareholders today that it has concluded an agreement with Alexander Forbes (Alexforbes) to sell OUTvest to the asset manager.
This follows an announcement in August wherein OUTsurance said that, following
a strategic review of OUTvest, the company decided to consider a restructuring of OUTvest due to the sub-scale nature of this business.
OUTsurance Holdings Limited – OUTsurance’s 89.8%-held subsidiary – said today that it has concluded an agreement with Alexander Forbes to acquire 100% of OUTvest, a wholly-owned subsidiary of OUTsurance.
The agreement is still subject to certain conditions, including regulatory approvals.
The company said Alexforbes has a strong track record in the South African investment landscape, and OUTsurance is confident that “a business of this stature will be a good fit for the OUTvest investment platform to ensure its full potential is realised”.
“Should the necessary regulatory approvals be obtained and commercial conditions precedent be fulfilled, OUTvest and Alexforbes will collaborate to ensure a seamless transition and minimal disruption for customers, employees and suppliers of OUTvest,” OUTsurance said.
“OUTvest is an award-winning digital wealth platform launched in 2017 and was built to enable the distribution of a range of high-quality, simple, and low-cost wealth products, through direct and intermediated channels to a wide range of customer segments,” Alexforbes said.
“The acquisition accelerates our digital journey and supports our strategy of transforming into the most impactful provider of advice to retirement fund members.”
The acquisition is expected to be completed by the end of March 2024.
OUTsurance said the transaction falls below the threshold for categorisation in terms of the JSE’s listing requirements.