/ 21 September 2021

Sanlam sells UK businesses worth R5bn

Sanlam Looks Off Shore For Expansion

Insurance company Sanlam has announced it has agreed to sell its UK private investments and wealth-planning businesses to US investment management firm Oaktree Capital Management.

The group said in a statement on Monday 20 September that the deal, which is subject to regulatory approval, is worth £140-million (R2.8-billion). 

Sanlam said the transaction was the final step in the execution of its strategy to simplify its UK operations and reallocate capital to Africa and other selected emerging markets.

The sale, expected to be completed during the first quarter of 2022, comes after Sanlam last week announced the sale of its UK life and pensions business to British-based holding company Chesnara for £39-million (R786-million). 

Sanlam said it has also completed the sale of its UK platform business, Nucleus Financial Group, in August for £75-million (R1.5-billion). The total proceeds from the sale of the three UK businesses is £254-million (about R5.1-billion). 

The group said offloading the three UK businesses would allow it to focus its international asset management business to better service its South African and African clients. 

“This transaction represents a good opportunity to reallocate capital to Africa, a key part of our diversification strategy, and other selected emerging markets while enabling us to amplify our international asset management offering and service to our clients,” chief executive Paul Hanratty said.

Sanlam’s share price declined by 3.16% to R60.94 per share by the close of business on 20 September.

Anathi Madubela is an Adamela Trust business reporter at the Mail & Guardian