FRIDAY, 12.45:
INSURANCE giant Sanlam is to merge its asset management functions with those of financial services company Genbel Securities (Gensec) in a R17,8-billion joint venture that comes ahead of Sanlam’s demutualisation and delisting.
The most likely way of structuring the transaction will be for Gensec to issue 96 million new shares to Sanlam, effectively raising its stake from 43,4% to 66,3% at the estimated cost of R7-billion.
Sanlam executive chairman Marius Daling said Sanlam is planning to restructure as a holding company with four autonomous subsidiary businesses, of which Gensec will form the asset management and investment banking arm. Gensec will manage Sanlam’s life assurance funds, unit trusts, properties and third party asset management clients, as well as its strategic investments.
Gensec chief executive Anton Botha is to remain at the helm of the merged company, which will also provide Gensec with a springboard into the European financial markets through Sanlam’s London-based operations.