Imperial’s sale of Regent to Hollard gets the greenlight
Approval from the Competition Commission follows the withdrawal of MotoVantage, a partnership between FirstRand and Hollard
The sale of Imperial’s insurance business Regent to Hollard — which was originally prohibited by the Competition Commission in October — received approval on Monday following the withdrawal of MotoVantage. In October, the Competition Commission said it objected to the deal because via MotoVantage, which is a partnership between FirstRand and Hollard, two large industry players would be able to exchange competitively sensitive nonpublic information. Imperial said under the new agreement, which excluded MotoVantage, it would receive about R1.8bn from Hollard. When Imperial first announced the deal in September 2015, it said it expected to receive about R1.6bn for Regent, of which R319m would be attributable profit. Although the final selling price was R200m higher, attributable profit was reduced to R170m, Monday’s statement said. Nevertheless, Wednesday’s announcement sent Imperial’s share price 4.5% higher to R169.87. Imperial said in Wednesday’s statement that MotoVantage had withd...
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