In a press statement that was seen by Business Insider Africa, it was explained that the partnership would entail the establishment of a joint venture (JV) and the pulling together of assets totaling €2 billion.
When finalised, the deal is expected to create a pan-African insurance company that would boast as one of the largest across the African continent.
“In line with Sanlam’s stated strategy to become a leading Pan-African financial services group by driving operational excellence in core markets and selective expansion into high priority countries, the proposed transaction will enable Sanlam to enhance its capabilities in existing markets and expand its footprint and market leading positions in certain key jurisdictions on the African continent,” said a part of the statement by Sanlam.
The statement further disclosed that the shareholding structure in the joint venture would be split 60%-40%, with Sanlam holding the controlling interest while Allianz holds a minority stake of 40%. Also, Allianz would have the opportunity to increase its stake to a maximum of 49% overtime, the statement said.
In the meantime, the proposed transaction is subject to various approvals, including regulatory and other customary conditions that must be met prior to finalising a deal of this magnitude.
As such, the deal would not take effect until all the ‘suspensive conditions’ are met. However, the statement said both parties expect this to happen within the next 15 months following this announcement.
Note that Sanlam and Allianz currently have operations across many African countries including Nigeria, Kenya, South Africa, etc.
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