Insurance company Sanlam to expand in Africa with $375m acquisition
Sanlam is looking to enter several markets on the continent.South-African insurance company Sanlam announced on Tuesday (November 24th) it is planning to acquire a 30 per cent stake in Morocco-based Saham Finances in a bid to expand its footprint in Africa.
The group will spend $375 million
to purchase the stake from the Abraaj Group and the International Finance Corporation (IFC).
Sanlam is looking to enter several markets on the continent, which it said are "both characterised by fast growing economies and underpenetrated insurance markets",
including Cote d'Ivoire, Gabon, Senegal, Cameroon, Morocco, Lebanon and Angola.
"The transaction provides the Sanlam Group with the opportunity of a single entry point to expand in both North and West Africa," the company said in a press release.
IFC Director Mouayed Makhlouf said the IFC is pleased to support the transaction, which "promotes cross-border South-South investments and partnerships across Africa".
Saham Finances is an insurance group with operations in 26 countries across North, West and East Africa, and the Middle East. It is the largest insurer in Africa excluding South Africa.
The transaction is expected to be completed in the first quarter of 2016.