| Thu 9 Dec 2004, 11:07 | | SANLAM AND THEBE FORM STRATEGIC ALLIANCE |
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SANLAM - SANLAM AND THEBE FORM STRATEGIC ALLIANCE
SANLAM LIMITED
REGISTRATION NUMBER: 1959/001562/06
INCORPORATED IN THE REPUBLIC OF SOUTH AFRICA
SHARE CODE JSE: SLM
ISIN: ZAE000028262
9 December 2004
SANLAM AND THEBE FORM STRATEGIC ALLIANCE
Sanlam Limited and Thebe Investment Corporation (Thebe), the oldest black
economic empowerment company in South Africa, today announced that they have
entered into an agreement for Sanlam to become a strategic partner in Thebe`s
financial services proposition.
The transaction comprises the following:
Sanlam Life will acquire 55% of Safrican, Thebe`s life assurance company
focusing on life, funeral and credit life insurance. Part of Safrican`s
distribution activities will be hived-off in a new entity called Thebe Community
Financial Services (TCFS), which will be used to expand the Thebe Group`s
financial services offering to its target markets.
TCFS will be 70% owned by Thebe and 30% by Sanlam Independent Financial Services
- a Sanlam cluster that invests in independent customer-facing entities and
intermediary businesses in the financial services industry.
Vusi Khanyile, Chairman of Thebe said, `Combining Thebe and Sanlam`s resources
in this market segment will provide the people, infrastructure and capital
required to take financial services products to our communities in a cost-
effective manner. The relationship is a reflection of a shared vision and our
common view of this segment of the market. The injection of funding enables
Thebe to explore new opportunities in the distribution of financial services
products, to streamline our operations and to leverage Sanlam`s product
portfolio to our advantage.`
Johan Van Zyl, CEO of Sanlam said: `Our alliance with Thebe is another step in
Sanlam`s strategy of having multiple client-facing units or brands in the entry-
level market and to complement organic growth through strategic acquisitions.
Earlier in the year this was also evident from the creation of Break-thru
Financial Services with FAWU. As targets are achieved, both these transactions
will enhance Sanlam`s distribution reach and will provide an attractive return
on capital invested as well as improving business volumes.`
Several of Thebe`s successful businesses will be housed in Thebe Community
Financial Services (TCFS). This will include Creditworx, a credit risk solution
company, with more than 102 branches throughout the country and an extensive
corporate client base with access to a large number of walk-in customers. It
will also include Thebe Employee Benefits (TEB), an employee benefits consulting
and administration entity; Thebe Transactiv, a data and money movement entity
and Thebe YoMnotho, offering SITE tax reconciliation services.
Safrican is one of the oldest, most established brands in the entry-level market
segment, with over R240 million annual premiums, almost two million insured
members and 600 brokers. Safrican also has a distribution agreement with the
South African Post Bank until the end of 2006, giving Sanlam and Thebe further
access to almost 3000 branches.
Sanlam and Safrican will be the exclusive long-term insurance product providers
in TCFS. The aim is to expand TCFS to aggressively distribute financial services
products through establishing financial services outlets and through its Post
Office agreement. Both organisations will be able to capture a broad part of the
market, as it will combine Safrican`s experience and distribution capabilities
in the entry-level market and Sanlam`s experience and product portfolio in other
markets,` said Van Zyl.
Vusi Khanyile from Thebe concluded that Thebe`s shareholders, including Batho
Batho Trust, are very positive about the Sanlam partnership. `There are
tremendous synergistic opportunities for both ourselves and Sanlam, which can
now be unlocked. As such, we view these developments as a win-win scenario for
everyone involved.`
The transaction is subject to certain regulatory approvals.
-Ends-
For further information contact:
Thebe:
Portia Tau Thebe
Tel: (011) 447 7800
Cell: 082 619 2507
Marina Penderis Magna-Carta
Tel: (011)784 2598
Cell: 082 561 0429
Sanlam
Frans van Rensburg Sanlam
Tel: 021 947 4893
Cell: O82 805 9245
Heinie Werth Sanlam
Tel: 021 947 9224
Cell: 083 286 2834
Di Munro Brunswick
Tel: 011 268 5750
Cell: 083 326 5958
Notes to editors
Thebe
Thebe, which was established in 1992 by Batho Batho Trust, now focuses on five
business areas, namely Financial Solutions, Insurance, Healthcare, Tourism and
Strategic Investments. Prior to the deal with Sanlam, Batho Batho Trust owned
74% of Thebe Investment Corporation, with the remaining approximately 26% owned
equally by Sanlam, Old Mutual and Investec (i.e. 8.7% each). In addition to its
investment in TIC, Sanlam will now hold 30% of TCFS and 55% of Safrican.
Safrican
Safrican began as a burial society in 1932 in Sophiatown. The company has
transformed itself from a burial society to an insurance company. Safrican has
over R240 million annual premiums, almost two million insured members and 600
brokers.
