In a press release seen by Business Insider Africa, it was explained that the partnership would involve the creation of a joint venture (JV) and the consolidation of assets for a total amount of 2 billion euros.
Once finalized, the deal is expected to create a pan-African insurance company that would boast of being one of the largest on the African continent.
“In line with Sanlam’s stated strategy to become a leading pan-African financial services group by driving operational excellence in key markets and selective expansion in high priority countries, the proposed transaction will enable Sanlam to enhance its capabilities in existing markets and expand its footprint and leading market positions in certain key jurisdictions on the African continent,” says part of Sanlam’s statement.
The statement further disclosed that the shareholding structure in the joint venture would be split 60%-40%, with Sanlam holding the majority stake while Allianz holds a 40% minority stake. In addition, Allianz would have the option to increase its stake to a maximum of 49% of overtime, according to the statement.
In the meantime, the proposed transaction is subject to various approvals, including regulatory and other customary conditions that must be met before finalizing a deal of this magnitude.
As such, the agreement would not take effect until all “conditions precedent” are met. However, the release says both parties expect this to happen within the next 15 months of this announcement.
Note that Sanlam and Allianz currently have operations in many African countries including Nigeria, Kenya, South Africa, etc.