Saham Assurance: The redemption by Sanlam of additional shares canceled
Sanlam indicates, in an alert intended for its shareholders, that “the conditions precedent to the operation have not been fulfilled”. Saham Assurance is preparing a communication on the matter.
Sanlam’s plan to acquire 22.8% of additional shares in Saham Assurance fell through. The South African company therefore retains a 61.7% stake in Saham Assurance. In an alert intended for its shareholders and published on its corporate site, Sanlam reveals that “the conditions precedent to the operation have not been fulfilled”. These conditions notably included the approvals of the appropriate regulatory authorities in Morocco and South Africa. Contacted by “Le Matin” to obtain more details on the unfulfilled conditions, Aïcha Bennani, communication & PR manager at Saham Assurance, said that the company was preparing a communication on the issue.
Announced last May, the transaction involved 1.24 billion dirhams and was to be financed by credit facilities. Saham Assurance was to reinvest 50% of this amount to acquire Sanlam shares on the open market at the prevailing share price and hold them for a minimum of two years. The Moroccan company should also continue to provide strategic advice to the Sanlam Group related to its activities in Morocco. For Sanlam, a larger stake in Saham Assurance was expected to bring growth potential and strategic advantages, including deepening its direct presence in French-speaking North and West Africa and integrating Sanam into the Sanlam group, in line with its African diversity strategy. “We have always believed that there were strong synergies between the Sanlam and Saham groups.
In addition to offering additional protection to minorities, the increase in our stake in Saham demonstrates our commitment to strengthening a strategic partnership further consolidating the synergies between the two Groups,” said Ian Kirk, CEO of Sanlam Group.