Allianz ups indirect stake in Sanlam via Sh31bn deal
Sanlam House on Kenyatta Avenue in Nairobi.
Global insurer Allianz SE is set to increase its indirect stake in Sanlam Kenya to 28 per cent from 23.09 per cent after acquiring an additional stake in the joint venture between it and the parent company of the Kenyan insurer for R4.5 billion (Sh31.3 billion).
The rise follows Allianz SE’s move to purchase an 8.59 per cent extra shareholding in SanlamAllianz—a joint venture that was formed between the global insurer and Sanlam Limited, which is the majority owner in Sanlam Kenya.
Allianz SE entered the deal through its wholly owned subsidiary, Allianz Europe BV, initially giving it a 40.413 per cent stake in the JV as of September last year while Sanlam Limited held the balance through Sanlam Emerging Markets Propriety Limited (SEM).
Now SEM has agreed to sell 8.59 per cent of its stake in SanlamAllianz to Allianz for an initial cash consideration of R4.5 billion. The deal cuts SEM's stake in SanlamAllianz to 51 per cent while that of Allianz BV rises to 49 per cent, according to a statement by Allianz.
Allianz said the final sale consideration will be subject to closing adjustments, which will be mainly based on the December 31, 2024, audited financial statements of SanlamAllianz.
As a result of this latest transaction, Allianz BV has informed the Capital Markets Authority (CMA) of the impending rise in the indirect stake it holds in Sanlam Kenya, whose shares trade at the Nairobi Securities Exchange.
Sanlam Limited
SanlamAllianz fully owns Hubris Holdings Limited, a limited liability company through which South Africa’s Sanlam Limited owns a 57.14 per cent stake in Sanlam Kenya.
The JV company, therefore, indirectly owns 57.14 per cent stake in Sanlam Kenya. This gives Allianz the 23.09 per cent stake in Sanlam Kenya. However, this is set to rise to 28 per cent due to the Sh31.3 billion deal.
“Allianz will increase its indirect shareholding in Sanlam Kenya from 23.09 per cent to 28 per cent of the issued shares of Sanlam Kenya,” said Allianz in a public notice.
“Allianz, SEM, and the JV company are concert parties as a result of Allianz and SEM owning the shares in the JV company. However, there will be no change in the direct shareholding in Sanlam Kenya as a result of the proposed transaction.”
Sanlam Limited and Allianz had on May 2, 2022, agreed on an initial shareholding split of 60:40, respectively, then started working on certain post-closing adjustments to get the final shareholding split.
The 60/40 ownership was based on the relative appraised value of the assets the two were contributing as of June 30, 2021.
The two said then the joint venture was expected to have a combined group equity value of approximately R35 billion (Sh244 billion), giving customers a broader offering of insurance products tailored to their needs.
