Key Factors
- Sanlam acquires 60% of MultiChoice’s insurance coverage arm for $66.4 million to develop in Africa’s monetary market.
- The partnership leverages MultiChoice’s 21 million subscribers and fee methods to supply a spread of insurance coverage merchandise.
- MultiChoice retains a 40% stake, benefiting from progress whereas bolstering working capital and enhancing insurance coverage choices.
Sanlam Life, a subsidiary of Africa’s main insurer Sanlam partly owned by Africa’s first Black billionaire Patrice Motsepe, has finalized the $66.4 million acquisition of a 60 % stake in MultiChoice’s insurance coverage enterprise.
The transfer, introduced Monday, positions Sanlam to leverage MultiChoice’s broad subscriber base and fee methods to develop its monetary providers choices throughout Africa.
The deal, efficient Nov. 30, offers Sanlam entry to MultiChoice’s 21 million subscribers in 50 nations, a key benefit in tapping into Africa’s quickly rising monetary providers market.
Sanlam plans to cross-sell life insurance coverage, non-life insurance coverage, and wealth administration merchandise by way of MultiChoice’s established buyer engagement channels.
Strategic alliance to drive progress and innovation
The acquisition supplies Sanlam with vital growth alternatives, together with the potential for additional earnings.
As a part of the deal, MultiChoice will obtain an preliminary money fee of R1.2 billion ($66.4 million), with a performance-based earn-out of as much as R1.5 billion ($82.9 million) by 2026.
MultiChoice, which retains a 40 % share within the insurance coverage enterprise, will use the funds from the transaction to reinforce its working capital.
Each corporations goal to drive innovation and progress, with MultiChoice’s CEO Calvo Mawela calling the deal a “strategic milestone” that enhances worth for subscribers whereas tapping into Sanlam’s insurance coverage experience.
Sanlam expands its African footprint
Sanlam, partly owned by Africa’s first Black billionaire Patrice Motsepe, continues to solidify its standing as Africa’s main insurer by way of strategic acquisitions, together with the formation of SanlamAllianz, a three way partnership with Allianz geared toward increasing its attain throughout the continent.
One of many group’s items, Sanlam Life, which supplies life, non-life insurance coverage, and wealth administration options, operates in Africa, India, and Malaysia, positioning itself as a dominant participant within the international monetary providers market.
Sanlam Life’s acquisition follows the group’s recent $371.8 million buyout of Assupol Holdings, strengthening its place in South Africa’s life insurance coverage sector. The corporate can also be pursuing international growth, with a deal with India’s wealth-management trade.
