Sanlam to sell asset management stake to ARC for about R800m
African Rainbow Capital is expected to hold a 25% stake in a new black-owned investment management company
Insurer Sanlam is due to sell a 25% stake in its new black-owned asset management company to Patrice Motsepe’s African Rainbow Capital (ARC).
Based on an effective date of December 1, the expected maximum purchase would be R815.2m at the current prevailing prime rate, Sanlam said.
Sanlam said the creation of a new investment holding company, NewCo, would boost its empowerment credentials and give it better access to institutional flows.
“This is particularly relevant in the current challenging operating environment, which is likely to persist in the near term as the country recovers from the severe impact of the Covid-19 pandemic,” the statement read.
In morning trade on Thursday, Sanlam’s share was down 3.10% to R58.46, while ARC had surged 9.43% to R2.90, on track for its best day in almost five months.
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