Sanlam says it will offer 505 rand a share for all of Santam
The insurer, which already controls Santam, says the cash offer would take it to full ownership
Published
Sanlam said Monday it is offering to buy all remaining shares in Santam for 505 rand each in cash.
Sanlam held a 62.3% stake in Santam as of 2022, according to Wikipedia. A full buyout would move the insurer from majority control toward outright ownership of the business.
Sanlam has pursued this before. In 2006, when its stake stood at 52%, it held talks that News24 reported could lead to a bid for the rest of Santam. Those talks did not result in the kind of all-cash offer Sanlam says it is now making.
Because Sanlam already holds a majority of Santam, a cash offer for the remaining shares points toward full control and a possible delisting rather than a simple increase in its stake. The 505 rand price is the level minority shareholders and arbitrage traders will now weigh against Santam's market value and against any rival or revised bid. The deal still needs approval from South Africa's competition and insurance regulators before it can close, and because the offer is all cash, Santam shareholders deciding whether to tender would not take on any currency or share-swap exposure.