SLM/SLA Sanlam - Acquires BESTmed administration a
SLM
SLM
SLM/SLA Sanlam - Acquires BESTmed administration and health-care operations
Registered name: Sanlam Limited
(Registration number 1959/001562/06)
JSE share code: SLM
NSX share code: SLA
ISIN number: ZAE000070660
SANLAM ACQUIRES BESTMED ADMINISTRATION AND HEALTH-CARE OPERATIONS
Sanlam today announced that it has negotiated a transaction with the trustees of
BESTmed, an open medical scheme with a principal membership base of 33 000
members. In terms of the transaction, Sanlam will acquire BESTmed`s
administration and managed health-care operations, currently done in-house at
BESTmed. The scheme will effectively outsource these functions to new operating
companies formed and owned by Sanlam. Sanlam will market the scheme actively
via its distribution network, further enhancing the Group`s offering to an
expanding client base.
Sanlam`s Group Chief Executive, Dr Johan van Zyl, says that Sanlam`s strategic
interest in providing a medical scheme solution is well known and has been a
specific focus area in the repositioning of Sanlam`s comprehensive service
offering. He says Sanlam is confident that the transaction with BESTmed provides
for a win-win situation: "BESTmed will provide our Group with the health-care
solution it has been looking for, while the scheme will benefit from Sanlam`s
extensive distribution network of financial advisers and brokers. Being part of
the Sanlam brand will enhance the prominence and marketability of BESTmed and it
should lead to a strong growth in membership."
BESTmed was initially established in 1964 as the Statutory Organisations Medical
Scheme (SOMS), changing its name to BESTmed Medical Scheme (BESTmed) in 1990
when it opened up to the general public. The scheme still has a strong
membership base of employer groups in universities and semi-government
institutions.
BESTmed Chairman, Dr Bernard Slabbert, says the scheme evaluated Sanlam`s offer
against strong alternatives in a thorough tender process and the trustees are
confident that the transaction with Sanlam offers the best long-term prospects.
"We are particularly excited about the extensive possibilities offered via
Sanlam`s distribution network, and believe that the transaction will firmly
position BESTmed as a medical scheme with a long-term future in the South
African health-care market.
"While becoming part of the Sanlam brand, BESTmed will remain an autonomous
scheme and retain its name. On conclusion of the transaction, the scheme will be
available to Sanlam`s intermediaries to offer clients a fully integrated Sanlam
medical scheme option."
The transaction is subject to approval by BESTmed`s members, the Registrar of
Medical Schemes and the Competition Commission. The parties hope to have the
approval process finalised and the transaction implemented by November 2007.
The cost of the transaction was not disclosed.
Issued by Sanlam and BESTmed
For media enquiries contact:
Francois Marais at Sanlam on (021) 947-6678
or
Wicus Kotze at BESTmed on (012) 3399800
31 July 2007
Sponsor: J.P.Morgan Equities Limited
Date: 31/07/2007 12:00:04 Produced by the JSE SENS Department.
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