[Kenya] Sanlam Group acquires majority stake in PineBridge Investments East Africa Limited
Listed diversified Pan-African financial services group The Sanlam Group, through its subsidiary Sanlam Emerging Markets (SEM), has reached an agreement with PineBridge Investments (“PineBridge”), a global multi-asset class asset manager, to acquire PineBridge’s majority stake in PineBridge Investments East Africa Limited in Kenya (PIEAL).
The transaction is subject to regulatory approval, following which PIEAL will be rebranded Sanlam Investments East Africa Limited (SIEAL). Sanlam will then look to integrate its asset management businesses in the region.
PIEAL is a leading asset management company in East Africa with operations in Kenya and Uganda, where it is licensed by the Capital Markets Authority and the Retirement Benefits Authority in Kenya and the Ugandan Capital Markets Authority and the Uganda Retirement Benefits Regulatory Authority.
Sanlam Emerging Markets Chief Executive Officer, Mr Junior Ngulube, says the acquisition will increase Sanlam’s asset management presence and capability in the region and enable the Group to build a leading position in institutional, affluent and retail investment management across East Africa.
Mr Anthony King, Regional CEO, EMEA at PineBridge Investments, says: “We looked for a partner in Africa who could best continue to work with our clients on the continent and we are pleased to have been able to complete this transaction with Sanlam.
At the forefront of our negotiations was the need to secure a buyer with a strong local heritage in order to maximise future business growth and honour fiduciary, client and employee agreements. Sanlam is a respected brand with a compelling regional footprint that will offer financial strength and further access to local investment opportunities.”
Mr Ngulube adds that the transaction is expected to unlock synergies that reach beyond asset management. “The existing Sanlam businesses in East Africa will be able to leverage SIEAL’s capabilities. As the business develops, it will provide opportunities to expand geographically and develop other investment products.”
The Sanlam Group is one of Africa’s largest financial services providers, with a market capitalization in excess of US$ 11 billion (9 March 2017) and operations in 34 African countries.
Their investment management businesses currently have approximately US $60 billion in assets under management. Sanlam offers a comprehensive range of local and offshore investment products to end-investors, financial planners and institutions.
Its investment options include passively and actively managed unit trusts, hedge funds, and segregated and pooled retirement funds.
Mr Jonathan Stichbury, Chief Executive Officer of PIEAL adds: “Becoming part of the Sanlam Group offers our clients and staff new opportunities. We look forward to working with Sanlam to create value for our clients and continue building the East African business.”
Sanlam is a leading diversified Pan-African financial services group listed on the Johannesburg and Namibian Stock Exchanges. Sanlam was established in 1918 as a life insurance company.
Through its business clusters – Sanlam Personal Finance, Sanlam Emerging Markets, Sanlam Investments, Santam and the newly established Sanlam Corporate - the Group provides comprehensive and tailored financial solutions to individual and institutional clients across all market segments.
The Group’s areas of expertise include insurance (life and general), financial planning, retirement, investments and wealth.
The Group has a direct stake in operations based in South Africa, Namibia, Botswana, Swaziland, Zimbabwe, Mozambique, Malawi, Zambia, Tanzania, Rwanda, Uganda, Kenya, Ghana, Nigeria, India, Malaysia and the United Kingdom and has business interests in the USA, Australia, Burundi, Lesotho and the Philippines.
Through a strategic stake in the Saham Finances Group, it has exposure to insurance operations in Morocco, Angola, Algeria, Tunisia, Niger, Mali, Senegal, Guinea, Burkina Faso, Cote D’Ivoire, Togo, Benin, Cameroon, Gabon, Republic of the Congo, Madagascar, Mauritius, Lebanon and Saudi Arabia.