Sanlam raises $490m in new share issue

Sanlam, along with rival South African insurer Santam Ltd , said earlier this month that it will buy the rest of SAHAM Finances for $1 billion, as part of a plan to become a pan-African insurance group.

Picture: EWN

JOHANNESBURG - Sanlam has raised R5.7 billion ($490 million) from selling new shares to help fund its joint acquisition of Moroccan company SAHAM Finances, the insurer said on Wednesday.

Sanlam said it placed 65.5 million new shares, or roughly a 3% stake, through an accelerated bookbuild process to institutional investors for 87 rand per share, representing a discount of 5% to its closing price on Tuesday.

Sanlam, along with rival South African insurer Santam Ltd , said earlier this month that it will buy the rest of SAHAM Finances for $1 billion, as part of a plan to become a pan-African insurance group.

It said the proceeds from the placing will be used to fund that acquisition.

Subject to approval by the Namibian Stock Exchange Limited, the placing shares will also be listed on the Namibian Stock Exchange.

J.P. Morgan and Deutsche Bank are acting as joint global coordinators and joint bookrunners.