| Tue 31 Jan 2006, 9:26 | | Sanlam: Introduction of a significant BEE sharehol |
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SLM
SLM
Sanlam: Introduction of a significant BEE shareholder into Vukile
Registered Name: Sanlam Limited
(Registration Number 1959/001562/06)
JSE share code: SLM
NSX share code: SLA
ISIN number: ZAE000070660
SANLAM LIMITED ANNOUNCES THE INTRODUCTION OF A SIGNIFICANT BEE SHAREHOLDER INTO
VUKILE PROPERTY FUND LIMITED
Sanlam Limited today announced the introduction of a 25% Black Economic
Empowerment (BEE) shareholder, Vukile BEEShareCo (BEEShareCo) into Vukile
Property Fund Limited (Vukile). The R 439 million investment by BEEShareCo, a
black-owned and controlled entity, is an industry first for a property fund of
this size as the transaction results in Vukile immediately achieving its five-
year BEE equity target.
Proposed shareholders of Vukile BEEShareCo are: the Buhlobo consortium with an
agreed 40%; an additional BEE partner with 12% (in discussions); a broad based
Participation Trust with 24% and Sanlam will retain 24%. The broad based
Participation Trust is obligated to distribute linked units to additional
empowerment shareholders and all interim benefits from the transaction will
accrue to the Participation Trust.
In terms of the transaction, Sanlam Life agreed to sell 67.4 million of its
Vukile linked units to BEEShareCo for 640 cents per unit in September 2005,
representing a 2,5% discount to the then 30-day Volume Weighted Average Price
(VWAP). The sale of the linked units reduces Sanlam Life"s shareholding in
Vukile to 33%. To facilitate the transaction Sanlam Limited has provided
financial support in the form of a guarantee for R140 million and Nedbank
Corporate has funded the transaction via an R 439 million loan.
In 2004, Sanlam Properties, a division of Sanlam Investment Management (SIM),
listed Vukile on the JSE. Sanlam initially owned 67% of Vukile"s linked units
with the intention of reducing its shareholding to broaden Vukile"s shareholder
base and identifying opportunities to include valued adding BEE shareholders. A
key member of BEEShareCo, the Buhlobo Consortium, is currently active in the
property market and will be able to contribute to Vukile"s operations through
its extensive property finance expertise, experience and networks.
Incorporating additional BEE shareholders into Vukile BEEShareCo (via the
Participation Trust) is a further component of Sanlam"s overall empowerment
strategy regarding Vukile
Dr Johan Van Zyl, Group chief executive of Sanlam said: "As a leading empowered
financial services group in South Africa, Sanlam has a well established track
record of spearheading BEE transactions. Our initiatives include the empowerment
of Metropolitan Life in the early 1990"s and our own 10% equity transaction with
Ububtu Botho in 2003. Sanlam Properties" most recent empowerment initiative was
the formation of the R 500 million Vusani Property Fund. The introduction of a
significant BEE equity shareholder into Vukile represents our firm commitment to
meaningful transformation and broad based empowerment within the property
sector. Sanlam will continue to hold a meaningful stake in Vukile, allowing our
policy and shareholders to fully participate in the changing financial services
landscape and benefit from Vukile"s empowered credentials."
Banus van der Walt, Managing Director, Sanlam Properties (Pty) Ltd commented:
"Sanlam Properties is proud to have facilitated the introduction of a 25% BEE
equity shareholder into Vukile. Our strategy regarding the empowerment of our
property portfolios is ongoing and comprehensive. We follow a phased approach,
covering a number of distinct areas, looking for proactive partners that will
enhance our operational capabilities, creating genuine, sustainable empowerment.
In due course, Sanlam Properties expects to announce further empowerment
transactions aimed at broadening our BEE shareholder base."
Mlungisi Hlongwane, Chairperson of the Buhlobo Consortium explained the role of
BEEShareCo: "We are delighted to be one of the empowerment partners invited to
participate in this unique deal. The Participation Trust is a first and has been
designed to ensure that the BEE elements of Vukile are genuinely broad based. As
the lead consortium we are currently involved in the property sector and we
intend to play a full and active role in the further development of this
business bringing our skills to bear at both an operational and strategic
level."
Gerhard van Zyl, Chief Executive Officer, Vukile Property Fund commented on the
transaction: "This deal ensures that we are reaching important goals of our BEE
strategy well ahead of time. We have strong faith in the abilities of the
Buhlobo consortium and believe that the Participation Trust will add additional
substance to the broad based nature of this transaction. This gives Vukile a
strong, sustainable platform on which to grow its portfolio of assets and in the
long term create value for its unit holders."
Issued by Brunswick SA 011 268 5750
Enquiries
Sanlam, Frans van Rensburg 021 947 4893
Sanlam Properties, Banus van der Walt 011 375 2902
Vukile Property Fund, Gerhard van Zyl 011 288 1002
Buhlobo Consortium, Mlungisi Hlongwane 031 563 0745
31 January 2006
Sponsor:
J.P.Morgan Equities Limited
Date: 31/01/2006 09:26:13 AM Produced by the JSE SENS Department
