Sanlam to acquire controlling shareholding in AfroCentric Group
03-11-2022 12:46:13 | by: Marlene Mutimawase | hits: 1848 | Tags:

Sanlam has announced today that it has submitted an offer letter to the board of AfroCentric Investment Corporation Limited (AfroCentric), expressing Sanlam’s firm intention to acquire AfroCentric shares that would result in Sanlam acquiring a controlling shareholding in AfroCentric.

Sanlam (through Sanlam Life Insurance) currently holds 28.7% in ACT Healthcare Assets, which in turn holds AfroCentric’s businesses, including the Medscheme medical scheme administration business and AfroCentric’s pharmacy businesses. As part of the transaction, Sanlam will transfer its shareholding in ACT Healthcare Assets to AfroCentric in exchange for an equal (28.7%) shareholding in AfroCentric.

Should the transaction proceed, Sanlam will hold a majority of AfroCentric shares, with the final shareholding dependent on the percentage of AfroCentric shareholders that accept Sanlam’s offer. Sanlam has offered a purchase consideration of R6 per AfroCentric share, and AfroCentric shareholders have the option to receive the purchase consideration in cash or in Sanlam shares.