| Tue 26 Aug 2003, 15:14 | | Sanlam Announces Restructuring Of Genbel Securitie |
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Sanlam Limited - Sanlam Announces Restructuring Of Genbel Securities Limited
(Gensec)
Sanlam Limited
(Incorporated in the Republic of South Africa)
(Registration number 1959/001562/06)
Share code: SLM
ISIN No: ZAE000028262
26 August 2003
Sanlam Limited today announced the restructuring of its wholly owned subsidiary,
Gensec, as a further step in its strategy of improving operational focus and
delivery across the Group.
Sanlam remains committed to, and will continue with, its existing capital
support of Gensec. Gensec will remain a regulated entity and will change its
status only once all the necessary regulatory approval has been obtained.
Gensec will be refocused around the areas that are complementary and value
enhancing to Sanlam"s current businesses. The core activities will be grouped in
a new entity, Sanlam Capital Markets, which will leverage its capability to
capitalise on the potential of a centralised treasury, structured products and
brokerage capability to serve the Group"s clients.
Mark Murning, the current head of Risk Management Solutions and Treasury at
Gensec, who has been with Gensec for seven years, will manage Sanlam Capital
Markets. Capital Markets will eventually form part of the finance division of
Sanlam Corporate.
Certain long-term investments and activities will initially be retained but will
not be expanded. Peter Cook, the deputy CEO of Gensec for the past five years
will take responsibility for these activities.
Non-core investment banking activities will be terminated during the process of
restructuring and Steve Muller, head of Gensec"s investment banking, will manage
this process with Peter Cook. Muller has been with Gensec for eight years.
Marius Ferreira, the founder chief executive of Gensec, will assist with the
transition as an advisor to the group until June 2004. Anton Botha, the current
non-executive chairman of Gensec, will become CEO during the transition period,
expected to be complete by June 2004. Tom de Beer, a board member of Gensec,
will replace him as chairman. De Beer will relinquish his position as chairman
of Gensec"s audit committee and Div Geeringh has been appointed as the new
chairman.
Gensec posted an improved operating profit in the first six months of 2003. Dr
Johan van Zyl, Group chief executive of Sanlam Limited, congratulated Marius
Ferreira and Gensec employees with the results and thanked them for their
commitment, also in the deliberations leading to the new structure to unlock
value for the group.
"As we said in our announcement on the Group"s broader restructuring in May, we
would apply a back to basics strategy in all areas of the business. This
restructuring will unlock significant value for our Group by allowing us to re-
deploy our capital more effectively. By increasing our focus on the core
business of risk management solutions and associated capital market activities,
we will enhance our operational performance and optimise return on capital.
"The restructuring follows deliberations between Sanlam and Absa about the
potential sale of Gensec"s banking activities to Absa. Both Groups decided that
it would not be in either"s best interest to pursue an outright sale of Gensec.
"Our decision to realign the activities of Gensec within Sanlam does not
negatively impact on our relationship with Absa and our efforts to achieve co-
operation that would benefit both organisations are continuing," he said.
Date: 26/08/2003 03:00:03 PM
Produced by the JSE SENS Department
