Insurance company Assupol Holdings announced today that Sanlam intends to acquire 100% of the company for R6.5 billion.
Assupol is a 110-year-old South African insurance company listed on the Cape Town Stock Exchange.
Through its subsidiary, Sanlam Life Insurance, Sanlam intends to acquire 100% shareholding in Assupol, pending shareholder and regulatory approval.
This follows the announcement last year that Budvest, which holds 46.02% of Assupol’s securities, as well as the International Finance Corporation (IFC), holding 19.41% of Assupol, intends to dispose of their respective shareholdings.
Both have been shareholders in Assupol for 10 years.
Budvest and the IFC have provided irrevocable undertakings to vote in favour of all the resolutions required to implement the Scheme of Arrangement.
The decision on the new potential investor was made after careful consideration and extensive evaluation by the Assupol board of directors of the potential benefits for all parties involved.
Assupol chairman Dr Reuel Khoza said, “This acquisition by Sanlam will not only strengthen Assupol’s position in the market but also enhance our ability to continue providing exceptional value to our clients.”
“We are excited about this new chapter and look forward to the benefits it will bring to both our employees and clients.”
This move will further strengthen the two companies’ position in the market and enhance their ability to provide comprehensive insurance solutions to their respective clients.
There are no anticipated changes to the operations of both companies arising from Sanlam’s offer.
Assupol’s board of directors, in accordance with Regulation 108 of the Takeover Regulations, considered the terms of the Sanlam offer.
The independent board has resolved to recommend the offer to Assupol’s ordinary shareholders and the holders of the company’s ‘B’ shares.