Sanlam Announces Offer To Acquire Control Of Afrocentric
Sanlam Announces Offer To Acquire Control Of Afrocentric. The board of directors of Afrocentric has received an offer letter from Sanlam, expressing Sanlam’s firm intention to acquire shares, constituting no less than 36.9% and up to 43.9% of the current issued share capital of Afrocentric from Afrocentric shareholders.
Affordable and reliable healthcare is an important need for consumers. Sanlam intends to expand its client proposition to provide a more holistic product offering, including medical aid, health insurance and administration. Through this Transaction, Sanlam will be able to integrate Afrocentric’s product offering into its ecosystem, while Afrocentric will gain increased access to the wide Sanlam distribution network. Afrocentric’s client base will also benefit from access to the overall Sanlam product offering and vice versa.
Afrocentric is focused on delivering affordable medical aid, health insurance and administration which complements Sanlam’s purpose of enabling its clients to be financially secure and prosperous. Sanlam has an excellent offering in the employee benefits market and by offering health insurance and administration alongside its other benefits, Sanlam will be able to create a simpler and more convenient solution for employers. Sanlam believes in the long-term growth potential of Afrocentric and the businesses’ combined abilities to deliver a differentiated proposition in the healthcare sector. This will be done through developing bespoke healthcare solutions and enhanced commercial visibility through increased marketing and Sanlam co-branding at the administrator level.
In addition to the opportunity to participate in Sanlam’s vision for the future of Afrocentric, the implementation of the Partial Offer will afford Afrocentric shareholders an attractive opportunity to partially liquidate their otherwise illiquid Afrocentric shares at an attractive premium to the volume weighted average traded price (“VWAP”) of the Afrocentric Shares, while maintaining the benefits of remaining invested in a listed environment.
