A leading financial services group, SANLAM, has received approval for the acquisition of a significant stake in Afrocentric Healthcare Assets Proprietary Limited (AHA), which represents the biggest transaction in South Africa since 2005.
The 28,7 percent stake, valued at R703 million, is Sanlam’s largest transaction in South Africa since the acquisition of African Life in 2005.
Commenting on the partnership, Chief Executive Sanlam Group’s, Ian Kirk, said the partnership with AHA would complement the Group’s retail offering in South African and the rest of the African market, and positioned it well for the expected growth in the healthcare sector.
“A full basket offering of financial services has become a requisite for growth and increased success in the South African market. A strong medical scheme will enhance Sanlam’s offering, which does not currently have scale commensurate with the rest of its retail offering,” he said.
AHA is a wholly owned subsidiary of AfroCentric Investment Corporation (ACT), a diversified investment holding company, controlled by a number of black empowerment shareholders.
Executive Director ACT, Dr Anna Mokgokong, said this transaction offered them access to Sanlam’s extensive distribution network as well as a suite of financial products.
“We expect the partnership to positively position the ACT Group for further growth,” she said.
AHA owns more than 94 percent of Afrocentric Health Limited which has a 100 percent shareholding in Medscheme Holdings Limited, South Africa’s largest health risk management services provider and the third largest medical scheme administrator.
Medscheme also has a presence in some of the countries where Sanlam operates – Botswana, Namibia, Swaziland, Kenya and Mauritius.
