Investors raise questions as Sanlam buys out rest of Saham
The group spends $1.05bn on remaining shares to advance its 'Cape to Casablanca' footprint
Sanlam’s $1.05bn splurge on the remaining shares in Morocco’s Saham Finances has raised eyebrows in the investor community, even as it gives the insurance group what CEO Ian Kirk calls a "Cape to Casablanca" footprint. Having bought previous stakes in Saham — 30% in 2016 and 16.6% in 2017 — at hefty price-to-earnings multiples, Sanlam was always going to pay a premium for control. It also hedged payments at an average exchange rate of R13.50/$ over uncertainty relating to the ANC elective conference. The deal is Africa’s second-largest in financial services, behind Absa’s R18.3bn purchase of Barclays plc’s African operations in June 2013. That deal has since been unwound, as Barclays Africa once again becomes Absa Group. Analysts are sceptical, questioning whether Sanlam has the management bandwidth to oversee such a large number of businesses. The group will be in 33 African countries, with eyes on Ethiopia, where it already has a local partner, and Egypt. The deal would make most ...
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