Conditions of Santam’s takeover of Indwe disclosed

The Competition Tribunal this month published the conditions it has attached to Santam’s acquisition of Indwe Broker Holdings (Pty) Ltd.

In what amounts to a game of musical shares, Santam’s wholly owned subsidiary, Swanvest 120 (Pty) Ltd, has bought the 76% of Indwe it did not already own: the 51% shareholding of African Rainbow Capital Financial Services (Pty) Ltd and the 25% shareholding of Sanlam Life Insurance Limited. The share purchases take Swanvest’s (read: Santam’s) stake in Indwe from 24% to 100%.

Santam is 59.9% owned by Sanlam. Patrice Motsepe’s Ubuntu-Botho Investments, which has a 13.1% stake in Sanlam, owns ARC Financial Services.

Meanwhile, Indwe has moved its corporate and specialist business, including Indwe Risk Solutions, into a new entity, Simah Risk Holdings, which is owned by ARC Financial Services and management, whose respective shareholdings have not been disclosed.

The conditions of the Indwe/Swanvest merger are that Santam will spend at least R6.6 million over the next three years so that Indwe can hire, train and develop 10 black brokers.

Indwe will also provide the brokers with office and infrastructure support for three years. This benefit is valued at R10 000 per broker per month (or R1.2m a year), according to the tribunal’s order.

, , ,

No comments yet.

Leave a Reply

SA Corona Virus Online Portal Logo