Africa’s largest insurer, Sanlam Limited, plans to acquire Assupol Holdings Limited

Sanlam Limited, Africa’s largest insurer, plans to acquire a 100% stake in Assupol Holdings Limited for R6.5 billion through its fully-owned subsidiary, Sanlam Life Insurance Limited. Assupol, a 110-year-old life insurance company, is listed on the Cape Town Stock Exchange.

This proposed transaction follows last year’s announcement that Budvest Proprietary Limited, which holds 46.02% of Assupol’s securities, and the International Finance Corporation, with a 19.41% stake in Assupol, plan to divest their holdings.

Assupol Chairman, Dr Reuel Khoza, stated that the acquisition would strengthen Assupol’s market position and enhance its ability to provide exceptional value to clients.

Sanlam’s offer is expected to cause no major operational changes for either company. Assupol’s respected brand, trusted by over four million life insurance policyholders in South Africa, will be maintained and further promoted.

Assupol’s board of directors, following Regulation 108 of the Takeover Regulations, have formed an independent board to consider the terms of Sanlam’s offer. “The independent board has resolved to recommend the offer to Assupol ordinary shareholders and the holders of the ‘B’ shares in Assupol,” the board stated.

The execution of this Scheme of Arrangement is contingent upon meeting or waiving certain conditions precedent by January 31, 2025. These include approvals from Assupol shareholders, Cape Town Stock Exchange, the Takeover Regulation Panel, competition authorities, and all other pertinent approvals for a transaction of this nature.