Sanlam plans up to R8.6 billion stake sale to black investors, employees

The transaction would take direct shareholding by black investors in Sanlam to 18%.

Picture: Sanlam.

JOHANNESBURG - South Africa’s biggest insurer Sanlam Ltd plans to sell a 5% stake at a 10% discount to black investors and employees to meet affirmative action rules, it said on Wednesday.

The deal could be worth as much as R8.6 billion, Sanlam said in a statement.

Companies in South Africa have to meet quotas on black ownership, employment and procurement as part of a government drive to shift more of the mostly white-controlled wealth into the hands of the black majority.

The transaction would take direct shareholding by black investors in Sanlam to 18%.

“The proposed transactions will increase economic inclusion as new broad-based beneficiary groups focused on black women and youth as well as Sanlam’s South African employees, will participate in 80% of the new shares to be issued,” the statement added.