Sanlam Limited - Announcement
Sanlam Limited
Incorporated in the Republic of South Africa
(Registration number 1959/001562/06)
Share code: SLM ISIN code: ZAE 000028262
"Sanlam" or "the company"
Thursday, 12 December 2003
Sanlam buys 28% strategic stake in Octogen Limited ("the Group" or "Octogen")
Octogen Limited announced today that Sanlam would acquire 28% of the Group for
R10 million, payable in cash, effective from 1 December 2003.
Octogen provides finance, debt management, insurance and financial planning
services to low to middle income employees throughout the SADC region. The Group
also acts as a specialised intermediary between banks, capital markets and
insurers as well as between employees and large corporations. South African
operations are driven under the "General Union" brand.
The strength of the Octogen business model lies in its unique partnership
approach, ranging from full-scale joint ventures with financial institutions
through to formal co-operation agreements with employers and trade unions.
Employers and their trade unions have responded positively to Octogen, due to
its ability to ensure a more contented workforce that has convenient access to
the very best and most reputable financial services.
Commenting on the deal, Philip van den Heever, CEO of Octogen said, "We are very
pleased to have Sanlam as a strategic shareholder in our Group. This deal not
only provides capital to help fund exciting expansion opportunities, but
Sanlam"s strong brand, expertise and access to a wide range of markets in South
Africa will add significant value to the Group. We also look forward to
partnering Sanlam in the joint development of niche products and services."
"Octogen provides a very useful platform to improve our access and ability to
provide products and services to the mass market in South Africa. Octogen has a
focused strategy and highly skilled and experienced management team and we are
confident of a strong performance from the Group going forward," said Nick
Christodoulou, Chief Executive of Sanlam Independent Financial Services.
It is proposed that all shareholders of Octogen will participate in funding the
inclusion of a BEE partner with 25% shareholding through convertible preference
shares in Octogen, during the first quarter of 2004. This will result in
Sanlam"s final shareholding in Octogen decreasing to 25%.
Sponsor: JPMorgan
Date: 12/12/2003 02:52:03 PM Produced by the JSE SENS Department
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