Sanlam Announces Purchase Of Remaining Shares In Brightrock Holdings
Sanlam Announces Purchase Of Remaining Shares In Brightrock Holdings. Sanlam has agreed to acquire the remaining shares in BrightRock Holdings Proprietary Limited (BrightRock) from its minorities and to bring it fully into the Sanlam stable to extract further synergies and enhance long-term growth.
Sanlam has agreed to bring BrightRock under full control, increasing its shareholding from 62% to 100% for an initial payment of R399 million on effective date, reflecting current embedded value in the business. Further payments of between R95 million and R437 million will be paid over the next three years, subject to the negotiated value of new business targets being met.
Sanlam has also agreed to combine the fiduciary operations of Sanlam Trust Proprietary Limited with those of Capital Legacy Solutions Proprietary Limited to create a formidable fiduciary business with a unique life insurance offering, the Legacy Protection Plan. Sanlam believes these agreements or transactions will significantly strengthen its retail life insurance operation in South Africa.
These transactions represent a significant deployment of discretionary capital of some R1,1 billion. The group is confident that the returns on these investments will exceed target return hurdles and that each transaction will generate appreciable synergies. The group’s discretionary capital position will remain strong post these transactions and further guidance on capital allocation and deployment will be provided with the annual results on 9 March 2023.
Capital Legacy and BrightRock products and services add to Sanlam’s excellent client offering and support its purpose of empowering generations to be financially confident, secure and prosperous, while contributing to its strategy of building a fortress position in South Africa.
