[South Africa] Sanlam finalizes R 7.8billion B-BBEE share issue
Sanlam has announced that it has agreed to the pricing of the Broad-based Black Economic Empowerment (B-BBEE) Transaction announced in October 2018.
The company will now proceed with the issuance of 111 349 000 Sanlam ordinary shares to the Subscription SPV (an SPV in which 80% new beneficiaries will participate) at an issue price of R70 per share, being a discount of 9.88% to the three-day VWAP in March 2019.
On 12 December 2018 Sanlam shareholders approved the package of transactions, which includes the aforementioned equity raising.
Sanlam Group Chief Executive Officer, Mr Ian Kirk said:
“We are pleased with the progress we have made on our transformation strategy. The implementation of the 5% share issuance signals another milestone in the diligent execution of that strategy.”
The new broad-based beneficiary groups will include, among others, professional black women, rural and urban black women groups, black youth and black business partners.
The B-BBEE Transaction contributes to Sanlam’s strong and market-leading position in terms of empowerment.