The joint venture between insurance firms Allianz SE and Sanlam Limited is set to be completed by June of next year, launching a partnership that will last for at least a decade.
The joint venture, announced in May, will bring together the multinationals’ interests in their local subsidiaries Sanlam Kenya and Jubilee Allianz General Insurance Kenya among other assets spread across various markets.
Sanlam will own a 60 per cent stake while Allianz will hold a 40 per cent interest with an option to buy an additional nine per cent ownership in the future.
“As of 30 June 2022, all requirements to present the assets and liabilities of the affected operations across Africa allocated to the reportable segments Global Insurance Lines & Anglo Markets, Middle East and Africa (Property-Casualty and Life/Health) as held for sale were fulfilled,” Allianz said in a statement.
“The agreement is subject to certain conditions precedent that Sanlam and/or the Allianz Group would be required to fulfil for each jurisdiction. The completion of the transaction is expected for the first half-year of 2023.”
Allianz will contribute its ownership in its African subsidiaries, including majority stakes in Jubilee general insurance businesses in Kenya, Uganda, and Burundi which it recently acquired in cash transactions.
Sanlam will contribute its interests in Sanlam Kenya (57.1 per cent) and other operations.
The multinational’s operations in South Africa, India, the Middle East, and Malaysia will be excluded from the deal.
It was not immediately clear whether the joint venture will move beyond asset transfers to take full ownership or merge the businesses in which the parties have controlling stakes in the various markets.
Sanlam Kenya is listed on the Nairobi Securities Exchange and has minority shareholders including billionaire investor Baloobhai Patel with a 20.7 per cent stake.
