Allianz Europe BV, part of the Allianz Group, a global leader in insurance and asset management, has announced its intent to increase its indirect shareholding in Sanlam Kenya Plc from 23.09% to 28%.
This announcement was made following the signing of a conditional share purchase agreement with Sanlam Emerging Markets Proprietary Limited (SEM).
In May 2022, Allianz Europe BV and Sanlam Kenya PLC announced their partnership agreement to strengthen their respective activities in Africa and provide insurance services across 29 African countries, becoming SanlamAllainz.
Before the announcement, Sanlam Kenya PLC was already renowned for its insurance financial services offered to Kenyans. In 2017, Sanlam Kenya acquired stakes in PineBridge Investments, a leading multi-class asset manager in Kenya and Uganda, extending its coverage and service delivery in East Africa.
At the time of the announcement in May, the equity value of the new joint venture was estimated at 2 billion EUR (2.1 billion USD).
Furthermore, in September 2023, Sanlam Kenya PLC and Allianz Europe BV announced that they had received regulatory approvals for a Joint Venture (JV) to create Pan-African non-banking financial services company with a presence in 27 countries in Africa. Currently, the JV holds a 57.14% stake in Sanlam Kenya through its subsidiary Hubris Holdings Limited.
In the voluntary announcement of the JV on the Allianz website, it explained the modalities for the increased noted that SEM will dispose of 8.59% of its interest in SanlamAllianz to Allianz BV for an initial cash consideration of R4.5 billion, resulting in a final shareholding split between SEM and Allianz BV in SanlamAllianz of 51% and 49% respectively.
The final sale consideration will be subject to closing adjustments, which will be mainly determined based on the 31 December 2024 audited financial statements of SanlamAllianz.
The company also noted that the transaction is subject to obtaining the necessary regulatory approvals from Kenya’s Capital Markets (Take-overs & Mergers) Regulations, since Sanlam is listed at the Nairobi Securities Exchange. In the application to the Nairobi’s Security Exchange, Allianz is also seeking exemption from Take-Over rules, with no further acquisition plans.
Allianz has also assured shareholders that the transaction would not affect Sanlam Kenya’s direct ownership structure.
