| Wed 3 Nov 2004, 13:14 | | Press Release |
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Sekunjalo Investments Limited - Press Release
Sekunjalo Investments Limited
(Incorporated in the Republic of South Africa)
(Registration number 1996/006093/06)
Share code: SKJ ISIN: ZAE000017893
(`Sekunjalo` or `the company`)
Sekunjalo Investments Limited (Sekunjalo) acquires 70% shareholding in Bonben
Assurance Limited (Bonlife) and 70% shareholding in Benmed Medical Scheme
Administrators (Pty) Limited (Benmed)
Sekunjalo is pleased to announce that it has acquired 70% shareholding in Benmed
and 70% shareholding in Bonlife from Bensure Management Services (Pty) Limited
(BMS) and Maximus Productions (Pty) Limited.
Sekunjalo`s Chief Executive, Dr Iqbal Surve said that this transaction
represents an exciting new phase in the business of Sekunjalo. The Group is
using its economic model, which it has successfully pioneered in its other
businesses, namely the fishing and the health care industries, to provide cost
effective, accessible and affordable products and services to the poor and the
emerging black middle class.
Benmed, a medical scheme administrator provides and administrates products
predominately to state employees, whilst Bonlife is a life assurance company
that provides products predominately to the HDI community.
Dr Surve said that Sekunjalo has carefully considered acquiring control of
these two businesses so that it can use its collective ingenuity, unique
understanding of HDI communities and its extensive network, along with the
strategic partnership and skills competence of the employees and management of
Benmed and Bonlife will enable the provision of product solutions which are non
exploitative. This will assist the emerging black middle class and poor to
participate in the benefits of our economy.
Dr Surve indicated that this acquisition is the first part of a strategic
thrust, which will, combined with further acquisitions, position the group at
the forefront of providing affordable health funding and financial service
solutions to the poor and emerging black middle class.
He said, `As South Africans we need to combine our resourcefulness and our
unique ability to develop products and services to help improve the lives of all
our people. Business is a critical stakeholder partnering with employees,
management, and communities to provide solutions which must be sustainable.
This acquisition also gives Sekunjalo the platform with which to partner
Government in the areas of health insurance, financial benefits, securitisation
and housing to deliver a comprehensive solution which is affordable for the poor
and emerging black middle class.`
Deon van Rooyen, representing BMS, said that they have agreed to sell a majority
shareholding of the business to Sekunjalo, at a substantial discount to its
underlying value, for the following reasons:
`Firstly, we share the vision of Sekunjalo through its economic model to provide
affordable and cost effective solutions for the poor and emerging black middle
class.
Secondly, our discussion with Sekunjalo has allowed us to understand the
tremendous value and strategic network that the company provides. Thirdly, we
see Sekunjalo as an ideal partner due to the caliber of its management and its
board. `
Mr van Rooyen said, that there was no doubt that the economic model pioneered by
Sekunjalo will significantly influence Black Economic Empowerment (BEE).
He believed that the model facilitates partnerships between established white
corporate business and BEE groups. BMS was confident that Sekunjalo represents
the future of BEE in the country and have agreed that the consideration will be
paid in Sekunjalo shares. They have also agreed to a lock-up period of 1 year
for these shares.
Mr van Rooyen says, that while many BEE groups had approached them to do a
transaction, Sekunjalo represented the most impressive BEE group in terms of its
vision for the country and the way it has modeled itself as a business.
Dr Surve said that Sekunjalo`s economic model should serve as an example of how
it is possible for business in South Africa to overcome and eradicate poverty
yet remain commercially viable.
ENDS
For further enquiries contact:
Dr Iqbal Surve : 021 658 2700
03 November 2004
