Sanlam and Allianz Merger in Africa Takes Effect

In a move aimed at strengthening their presence on the African continent, Sanlam Limited and Allianz SE have announced the creation of the Sanlam Allianz Africa joint venture after receipt of all requisite regulatory approvals from regional authorities on September 5, 2023.

The two entities announced in May 2022 to combine their current and future operations across Africa to create the largest Pan-African non-banking financial services entity on the continent with operations in 27 countries.

Sanlam Limited, a South African company listed on the Johannesburg Stock Exchange, holds 100% of Hubris Holdings Limited, which in turn has a 57.14% stake in Sanlam Kenya Plc. The joint venture was formalized through definitive agreements between Sanlam South Africa and certain associated entities within Allianz SE, which were inked on May 4, 2022.

Sanlam and Allianz have agreed to an initial split of 60:40, respectively, in the joint venture company (JVCo). This structure ensures that Allianz, with approximately 40% ownership in JVCo, does not attain ‘effective control’ of Sanlam Kenya as defined in the Capital Markets (Take Overs and Mergers) Regulations 2002. Importantly, this means that there will be no immediate change in the direct shareholding of Sanlam Kenya.

The newly established Sanlam Allianz Africa joint venture will serve as a hub for the combined operations of Sanlam and Allianz across African countries where either or both companies currently operate. This collaboration aims to leverage the strengths, expertise, and resources of both organizations to offer a wider range of insurance and financial services, ultimately benefiting customers and shareholders alike.

Impact on Sanlam Kenya Shareholders and Investors

Given the potential impact on the value of Sanlam Kenya shares, the company’s shareholders and other investors have been advised to exercise caution when dealing in Sanlam Kenya shares on the Nairobi Securities Exchange.