Sanlam offers to buy out Santam for 20.7 billion rand — TimesLIVE
In South Africa, financial group Sanlam has offered to buy out the shares of Santam’s minority shareholders, the country’s largest short-term insurer. Sanlam, which already owns 62.7% of Santam, offered 505 rand per share. The total value of the offer is 20.7 billion rand, TimesLIVE reports.
Shareholder and regulatory approvals are required
If the offer is supported by Santam shareholders and regulators, Sanlam will gain full control of the insurer. According to Sanlam CEO Paul Hanratty, the deal is expected to simplify the group’s structure in South Africa, reduce the number of entry points into it and improve decision-making on capital allocation.
Hanratty said that Santam’s full integration into the group’s ecosystem aligns with the strategy of strengthening Sanlam’s position in the South African market. He also believes that the deal could over time generate synergies within Santam’s ecosystem, diversify the group’s income and support its goals through 2030.
Group expansion strategy
Sanlam is developing its business in South Africa, other African countries and India. In recent years, the group acquired Assupol, gained full control of BrightRock and, together with European insurer Allianz, created the pan-African business SanlamAllianz, which operates in 25 countries.
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In South Africa, the group is also developing its banking business through a partnership with GoTyme. According to TimesLIVE, Sanlam received regulatory approval to sell banking products under TymeBank’s licence from 2027.
Over the past five years, Sanlam paid shareholders 51 billion rand, including 47.1 billion rand in dividends and 4.2 billion rand through share buybacks. The group invested another 24.8 billion rand in strengthening its retail platform in South Africa and insurance platforms in India and African countries.
Hanratty, who has headed Sanlam since 2020, is due to leave his post at the end of 2027. The publication notes that the Santam buyout could become one of the last major deals under his leadership.
