CHAMWE KAIRA
Sanlam and Ninety One have entered into a binding framework agreement, the companies announced in a stock exchange notice.
Under the terms of the agreement, the parties have agreed to establish a long-term relationship whereby Sanlam will appoint Ninety One as its primary active investment manager for single-managed local and global products. Both companies have operations in Namibia.
Ninety One will acquire all the issued shares in Sanlam Investment Management Proprietary Limited, an active investment management business wholly owned by Sanlam Investment Holdings Limited, in which the Sanlam Group holds an effective 65.6%.
SIM will become a wholly owned subsidiary of Ninety One.
In addition, Sanlam will appoint Ninety One as the permanent investment manager to manage assets for Sanlam Investments UK Limited, a wholly owned subsidiary of the Sanlam Group.
Furthermore, Sanlam will serve as an anchor investor in Ninety One’s international private and specialist credit strategies that meet its investment requirements. The Sanlam Group will receive an approximate 12.3% equity stake in Ninety One through a combination of Ninety One Limited and Ninety One plc shares, thereby establishing the Sanlam Group as a long-term shareholder of Ninety One.
Ninety One, established in 1991 in South Africa, is an active investment manager for third-party clients. From its emerging market origins, the firm has built a global presence.
Ninety One is listed on the London and Johannesburg Stock Exchanges.
Hendrik du Toit, Ninety One Founder and Chief Executive Officer, commented: “We are looking forward to a long and fruitful relationship with Sanlam, a business with a powerful brand and significant scale in South Africa. Our experience and expertise are complementary. This agreement will give us the opportunity, as leaders in our respective markets, to create additional value for our stakeholders. We are making a substantial investment in the future of South Africa.”
Founded in 1918, Sanlam is the largest non-banking financial services group in Africa and is listed on the Johannesburg Stock Exchange, Namibian Stock Exchange, and A2X Markets Limited.
Sanlam operates in 31 countries, including eight of the top ten largest African economies. Sanlam offers a wide range of financial solutions, including life and general insurance, health, financial planning, retirement, investments, wealth management and credit, to institutional and retail clients.
Paul Hanratty, Sanlam Group Chief Executive Officer, commented: “Sanlam is pleased to partner with a like-minded business with a shared South African heritage, proven global expertise and a reputable brand.
By leveraging our complementary competencies, Sanlam Investments will be strengthening its South African and global position as a multi-skilled asset manager. Coupled with Sanlam Investments’ market-leading expertise in passive and alternative asset classes, as well as multi-managed solutions, the relationship is set to unlock value for its clients, distribution force and shareholders.
