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Sanlam Limited -
Sanlam Limited
(Incorporated in the Republic of South Africa)
(Registration number 1959/001562/06)
(Share code: SLM)
(ISIN No: ZAE000028262)
20 August 2003
Sanlam Limited today announced the restructuring of its international business,
Sanlam Financial Services (SFS), in line with the group"s broader restructuring
announced in May 2003, which aims to increase focus, accountability and return
on capital.
In terms of the agreement SFS will transfer responsibility for the South African
sourced international funds (approximately R18 billion) that it currently
manages through io investors to a new business unit in the Sanlam investment
cluster, Sanlam Multi-Manager International (SMMI), which business will be
wholly owned. io investors will continue to focus on specialised investment
products and solutions for the non-South African market.
SMMI will be based in London and will operate as a profit centre. The new
structure will give the Sanlam investment cluster integrated control of Sanlam"s
observed investment performance in the South African marketplace and allow SMMI
to manage the assets according to appropriate benchmarks for South African
investors. The simplified investment offering and utilisation of Sanlam"s South
African resources will enhance the overall profitability of managing the South
African sourced international funds.
SFS will continue to develop its range of consulting, financial advisory and
investment businesses. io"s Alternative Investment Strategy funds will remain
under the management of io investors and SFS will continue to access the io
range of traditional investment products in developing and providing solutions
to its clients.
The net effective consideration for the restructuring, which includes the
transfer of the right to manage the South African sourced international assets
from SFS to Sanlam and the capitalisation of loans from Sanlam of GBP5.5
million, will be a reduction in Sanlam"s holding in SFS from 81.1% to 60%.
Management and staff will now hold 40%. The redeployment of some staff into
consulting activities and the consequential savings in product development and
distribution costs as well as a small number of redundancies will serve to
enhance SFS"s profitability in the short term. The re-structuring will position
the business well for continuing growth in profits in the future.
"SFS, under the leadership of Jonathan Punter and supported by an excellent
team, will pursue its primary mandate to maximise the long term rate of growth
in SFS"s share value. It will continue to grow in its focus areas of advice and
client solution offerings in the savings and investment markets," said Dr Johan
van Zyl, Group Chief Executive of Sanlam.
On a group level, Sanlam will continue to move away from a centralised approach
to internationalisation, with each of the four current clusters developing and
expanding its own international activities.
"Enabling each cluster to grow its own international base will allow the group
to continue leveraging existing operational strengths to provide cost-effective,
relevant product and service offerings. Following our group restructuring, we
now have appropriate platforms in each cluster to pursue international growth
opportunities, such as third party administration, to build profitable
diversification of income streams", Dr van Zyl said.
Date: 21/08/2003 08:00:13 AM Supplied by www.sharenet.co.za
Produced by the JSE SENS Department
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