SANLAM AND ABSA PURSUE FORMAL CO-OPERATION
ABSA GROUP LIMITED
(Incorporated in the Republic of South Africa)
(Registration number: 1986/003934/06)
("Absa")
ISIN CODE: ZAE000013389
JSE CODE: ASA
Issuer code: AMAGB
SANLAM AND ABSA PURSUE FORMAL CO-OPERATION
Sanlam and Absa today announced that they have signed a memorandum of
understanding to pursue formal business co-operation. Under the agreement, the
groups will develop business plans and structures to harness potential synergies
through strategic business cooperation.
Several co-operation projects will be pursued in the next few months, including
distribution, data broking, trust business, bond and banking products, life
insurance, small and medium business development and financial transactions.
It was also announced today that Sanlam would offer some of the activities, such
as the investment banking business and arbitrage that will be discontinued in
the restructured Gensec Bank, to Absa in line with the aims of the co-operation
projects to seek potential value adding opportunities together.
Commenting on the co-operation process, Johan van Zyl, Sanlam Limited CEO, said:
"The agreement is a point of departure for both groups towards enhanced business
co-operation that is based on sound business principles and service excellence.
It is a major step forward for Sanlam to ensure it maximises opportunities
flowing from its large shareholding in Absa. Working closely with Absa
complements our existing product offering and provides us with access to a
number of key growth areas to continue to unlock shareholder value."
Commenting on the co-operation process, Absa Group Limited CEO Nallie Bosman,
said, "We are following a thorough process to ensure the practical
implementation of these business plans. We are determined that the cooperation
must deliver positive financial outcomes for both groups. The benefits will be
realised over the next few years as a result of proper implementation."
Absa Contact person: Mr Frans du Toit (tel 011-350 4211)
Johannesburg
1 September 2003
Sponsor
Merrill Lynch South Africa (Pty) Limited
Date: 01/09/2003 11:00:04 AM Supplied by www.sharenet.co.za
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