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SANLAM AND ABSA - ANNOUNCE FIRST STEP IN CO-OPERATION AGREEMENT
ABSA Group Limited
JSE Share Code: ASA
ISIN: ZAE000013389
Sanlam Limited
JSE Share Code SLM
ISIN: ZAE000028262
NEWS RELEASE
Date: 1 March 2004
SANLAM AND ABSA ANNOUNCE FIRST STEP IN CO-OPERATION AGREEMENT
Sanlam and Absa today announced the formation of a joint venture company that
will offer home loans to Sanlam clients. This agreement follows the memorandum
of understanding signed between Sanlam and Absa in September 2003, wherein it
was envisaged that the two groups will develop business plans and structures to
harness potential synergies through strategic business co-operation.
The joint venture is based on Sanlam and Absa"s confidence in the future growth
of the mortgage market and that a sustainable new home loan business could be
built using the Sanlam brand, intermediaries and databases, together with Absa"s
mortgage and credit expertise and infrastructure.
Piet van der Walt, formerly of NBS and Nedcor, has been appointed managing
director of the new company.
"As we said at the time of signing the memorandum, working closely with Absa
would complement our existing product offering and will provide us with access
to a number of key growth areas to continue to unlock shareholder value. The
establishment of Sanlam Home Loans is in line with our strategy of improved
client focus and follows careful planning to ensure positive financial outcomes
for both groups," said Sanlam Group CEO, Dr Johan van Zyl.
Absa benefits directly from the agreement by earning income as the mortgage
servicer and fees as the lead manager and arranger of the securitisation
vehicles. In addition, increased administration volumes give Absa the benefit
of economies of scale.
Absa Group Chief Executive, Nallie Bosman, believes Sanlam Home Loans will pave
the way for further joint ventures and co-operation in the banking arena.
"Sanlam Home Loans is the first manifestation of Absa and Sanlam"s shared vision
to create profitable business solutions to meet customer needs. It is an
example of how Absa and Sanlam will in future leverage their strengths, working
together to broaden both their market share, one step at a time," says Bosman.
The intention is that Sanlam Home Loans (Pty) Ltd (SHL) will begin operations
before the second half of the year..
ISSUED JOINTLY BY SANLAM LIMITED AND ABSA GROUP LIMITED
For more information please contact:
Piet van der Walt
Managing Director: Sanlam Home Loans (Pty) Ltd
Tel: 011 778 6000 or 082 802 1039
Rachel Wall
General Manager: Business Development & Planning: Absa Home Loans
Tel: 011 350 4581 or 082 450 0850
Anton Gildenhuys
Chief Executive: Sanlam Client Solutions
Tel: 021 947 6962 or 082 497 3976
Date: 01/03/2004 02:00:03 PM Produced by the JSE SENS Department
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