Sanlam outlines asset management deal with billionaire Motsepe’s firm

‘This transaction takes Sanlam a step further on the journey to becoming South Africa’s leading asset manager,’ CEO Paul Hanratty said.
Image: Moneyweb

Patrice Motsepe’s financial services firm and Sanlam have signed a deal that will create one of the largest Black-empowered asset management companies in the country, the insurer said on Thursday.

Sanlam said plans for the deal were first flagged in 2018 when it announced a series of actions towards Black-economic empowerment, a government policy that encourages companies to meet quotas on Black ownership, employment and procurement to reverse decades of racial exclusion under apartheid.

Sanlam said the deal would unlock substantial value for shareholders by improving competitiveness and creating new opportunities for growth.

“This transaction takes Sanlam a step further on the journey to becoming South Africa’s leading asset manager,” CEO Paul Hanratty said.

The deal will see African Rainbow Capital Financial Services (ARCFS), part of Motsepe’s Ubuntu-Botho Investments group, take a 25% interest in Sanlam’s South African third-party asset management business, which following a reorganisation will include South African index-tracking business Satrix.

ARCFS will purchase shares in a new holding company housing the business, with the current purchase price currently seen at R815.2 million ($47 million), a 25% discount.

The transaction is expected to close in December.

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The contagion just don’t stop.

Yip -another BEE scheme that will” unlock value” only for the BEE partner and elite management. Thank goodness I cancelled al my RA’s at Sanlam years ago.

Huge value will be added by this deal. Shareholders sold the business at a 25% discount to Mr Motsepe. No doubt this will be recouped in the colossal value that he will add…

And no doubt he is being advised by the Steinhoff saint, Johan van Zyl who also works for AR Capital essentially acts for the buyer and seller(director of Sanlam)and sees absolutely nothing wrong with this!

Mr Hanratty should resign for doing this deal as should the captured board !

And in 2014 … “South African billionaire Patrice Motsepe has added over R8bn ($742 million) to his $2.7 billion fortune after his R200m ($19 million) investment in Sanlam’s Ubuntu-Botho BEE deal in 2004 recently matured, adding a return of 45 percent per year for the last 10 years.” venturesafrica.com

Ah, the joys of being connected with the right political party and family and friends.

Sigh …

Stop being a sore loser…I always follow anybody who has some good business sense. I’ll buy small parcels into ARC and hold, maybe I’ll hit jackpot like Motsepe in the next 5 years, or loose my fair bet. I tried to buy into Wiese strategy since 2016, but I lost big time. But, I’m still betting on Stelli mafias like Mouton and Bekker for some of my good returns. And I’ll bet on Shuter/Mupita to get longterm returns from MTN. Jealousy won’t get you no where.

You’ve got to hand it to those Afrikaans boytjies at Sanlam … carpe diem!

Smart move ne?

A new name for this venture?

Arclam…?

Maybe it will help the Arcinvest share price?

We hear the occasional good news, but the share price does not go up.

Also no dividends?

If this deal is so great for shareholders, why is the share down by nearly 5%? Or has the great news just not reached the investors yet? It seems like a time to buy!

Did Arcinvest not also buy a percentage of Aforbes beginning of the year?

Arcinvest seems to be very active in acquisitions.

R2.66 for a bank share looks cheap? plus bear look at their very low staff numbers.

End of comments.

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